HK stocks down 1.7 pct on earnings, tech worries

* Worries over declining earnings spark fresh selling

* China Mobile falls another 2.5 pct, leading losses on HSI

* Lenovo drops percent after Dell warns on tech spending

(Updates to mid-day)

By Parvathy Ullatil

HONG KONG, Sept 1 (Reuters) - Hong Kong shares started the new month on a weak note, falling 1.7 percent on Monday, as lingering worries over slowing corporate profitability sparked further selling of blue-chip stocks.

Shares in Chinese PC maker Lenovo Group (0992.HK) tumbled 7.4 percent after Dell (DELL.O) warned that companies worldwide were cutting technology spending.

Technology stocks across Asia took a beating on Monday after Dell confirmed the industry's long-standing fears of a demand slowdown. LG Electronics (066570.KS), the world's No.4 handset maker, plunged 9.2 percent while Taiwanese electronics gear maker Hon Hai (2317.TW), dropped 6.9 percent.

The benchmark Hang Seng Index .HSI ended the morning session down 356.19 points at 20,905.70. But volumes were thin with mainboard turnover falling to a dismal HK$22.6 ($2.9 billion) as compared with HK$34.6 billion at midday on Friday.

"The sell-off in the local market seems to nearing an end as most blue-chips are finished with their earnings announcements and the market has a had a chnace to factor those in," said Linus Yip, strategist with First Shanghai Securities.

"Sepetember is a month of consolidation, we should see a techinical rebound in the market after the big losses in August, he said.

The blue-chip index tumbled 6.5 percent last month, closing at a 12-month low of 20,392.06 on Aug 21.

Shares in China Mobile (0941.HK), the world's largest wireless carrier, fell another 2.5 percent, extending its heavy slide in the last two sessions, as investors continued to worry about the company's growth prospects in China's changing telecom landscape.

Fashion brand Esprit Holdings (0330.HK) dropped 6.7 percent as analysts predicted another month of flat retail sales growth in Germany, Esprit's No.1 market.

The stock has plummeted 19 percent in the past two trading sessions after the company reported lower-than-expected earnings in the first half and cautioned investors about a further slowdown in the second.

Hong Kong-listed arm of Taiwan's Hon Hai, Foxconn International Holdings (2038.HK), slipped 4.4 percent on Dell's comments and worse-than-expected quarterly profits from its parent company.

The China Enterprises Index .HSCE of top locally listed mainland Chinese firms fell 1.9 percent.

Top insurer China Life (2628.HK) slid 2.2 percent, tracking a 2.6 percent decline on the Shanghai bourse where it has substantial investments. Smaller rival Ping An Insurance (2318.HK) fell 2.8 percent while non-life insurer PICC P&C (2328.HK) gave up 4 percent.

Chinese coal miners moved lower on fears of stricter government-imposed price caps on thermal coal.

China Shenhua (1088.HK), the world's most valuable coal miner, fell 1.7 percent to HK$26.55 even after posting a 43 percent jump in first-half net profit on Friday. Credit Suisse cut its target price on the stock to HK$35 from HK$41 after factoring in the policy risk on contract coal.

Yanzhou Coal (1171.HK) fell 5.3 percent.

Shares in Sinofert (0297.HK), China's main distributor of imported fertilisers, fell 2.5 percent after Beijing raised export duties on nitrogenous fertilisers to 150 percent.

The increase, which will also apply to synthetic ammonia, will be in effect from Sept. 1 until Dec. 31, while a 100 percent duty on other fertilisers will be extended for an extra two months to Dec. 31. [ID:nSHA83295]

(Reporting by Parvathy Ullatil; Editing by Kim Coghill)