* CSI300 -0.19 pct, SSEC -0.16 pct
* PMI number, new lending rules don't lift stocks
* Hong Kong closed Tuesday for a public holiday
SHANGHAI, July 1 China's major indexes slipped
on Tuesday, as early gains for banks on new lending rules were
erased and solid manufacturing data failed to help stocks.
Analysts said the positive reading on industrial activity in
June had been expected and was already priced in by markets.
Similarly, railway shares ignored a report in the official
China Securities Journal saying that China will spend 327
billion yuan ($52.73 billion) on railroads, without giving a
The Hong Kong stock exchange was closed Tuesday for a public
holiday and will reopen on Wednesday.
At midday, the CSI300 Index tracking the leading
Shanghai and Shenzhen A-share listings was down 0.19 percent,
and the Shanghai Composite Index down 0.16 percent to
Late on Monday, the China Banking Regulatory Commission
announced relaxed rules for banks' loan-to-deposit ratios, a
targeted stimulus measure expected by analysts to help lift
growth in the world's second-largest economy.
But like similar measures announced earlier, including cuts
to reserve requirement ratios at rural banks, the new rules
failed to rally shares. Markets have been hoping for a
large-scale sustained injection of liquidity, such as a
system-wide cut to reserve requirement ratios.
Such a policy change would increase the base money supply
and offset the resumption of initial public offerings, which
have pulled from other stocks.
The IPOs have surged. Shares of Guangdong Ellington
Electronics Technology Co Ltd on Tuesday rose the
regulatory limit up of 44 percent in its trading debut on
Du Changchun, an analyst in Shanghai from Northeast
Securities, said the easing banking rules helped stocks in some
sectors, but weren't enough offset weak sentiment.
"Market confidence can't be boosted right away," he said.
The Chinext Composite Index, which tracks smaller companies
listed on the NASDAQ-like growth broad in Shenzhen, continued
its trend of outperforming the major indexs, rising 0.22 percent
in the morning.
($1 = 6.2017 Chinese Yuan Renminbi)
(Reporting by Pete Sweeney, Chen Yixin and the Shanghai
Newsroom; Editing by Richard Borsuk)