HK, China shares drift; new listings surge

* IPOs dazzle in both markets in hefty trade

* HK shares fall for 2nd week to finish at two-week low

* China shares drop off 13-mnth high; gain 0.8 pct on week (Updates to close)

By Parvathy Ullatil and Claire Zhang

HONG KONG, July 10 (Reuters) - Shares in Hong Kong and China dropped on Friday as worries about the global economy kept a check on buying, but investors piled into new listings on both bourses, boding well for the languid primary market.

China's first batch of initial public offerings (IPOs) in 10 months listed in Shenzhen on Friday, with the new listings doubling intraday in hectic trade, while Hong Kong's new listing Amber Energy (0090.HK) soared on massive interest with the retail portion of its issue oversubscribed 1,247 times. [ID:nSHA157992]

"With uncertainty about the U.S. economy and China's monetary policy dragging down the broad market, IPOs have become the way to make some quick money," said Steven Leung, director with UOB Kay Hian.

China saw a net fund outflow of $424 million in the week to July 8, while Hong Kong saw a pick-up in inflows, up 1.8 percent over last week, in line with easing concerns over interest rates, and the launch of a number of initial public offerings.

HONG KONG SHARES FALL FOR 2ND WEEK

The benchmark Hang Seng Index .HSI was down 0.5 percent or 82.17 points at 17,708.42, its lowest closing level in more than two weeks, although Esprit (0330.HK) gained 5.5 percent, trimming losses.

The gauge fell 2.2 percent in its second straight weekly decline, but is still up 56 percent from its March lows with its constituents valued at 16 times their estimated earnings per share in 2009.

Investor confidence in an early global economic recovery has been tested in recent weeks amid disappointing data and talk of the need for a second stimulus package for the U.S.

China's exports fell 21.4 percent in June from a year earlier, while imports fell 13.2 percent, Xinhua news agency said on Friday, quoting the General Administration of Customs.

Analysts see the main index range-bound between 17,000 and 19,000 points in the short term as corporate earnings begin to trickle in.

The China Enterprises Index .HSCE, which represents top locally listed mainland Chinese stocks, dropped 0.6 percent or 66.77 points to 10,574.42.

New listing Amber Energy (0090.HK), a gas-fired power plant operator, surged 63.2 percent to HK$2.71 on its debut, outstripping its issue price of HK$1.66. The stock opened at HK$2.56 and hit a high of HK$2.98 earlier in the session, up 79.5 percent with over 239 million shares changing hands.