HK stocks extend losses on China inflation fears

HONG KONG, May 20 (Reuters) - Hong Kong stocks extended losses to fall 2.23 percent on Tuesday, as inflation fears in China escalated after last week's earthquake, sending Shanghai shares down 4.5 percent to their lowest close in four weeks.

JP Morgan also turned cautious on China in the near term, saying in a research report on Tuesday there would be limited upside on major Chinese stocks listed in Hong Kong after the H-share index jumped 29 percent from its March lows.

The benchmark Hang Seng Index .HSI hit a day low of 25,042.09 before closing at 25,169.46, down 572.77 points. The China Enterprises Index of Hong Kong-listed companies .HSCE, or H shares, dropped 2.74 to finish at 13,973.60. (Reporting by Alison Leung; Editing by Anne Marie Roantree)