China, Hong Kong shares slip on worries over economic outlook


SHANGHAI, Oct 13 (Reuters) - China and Hong Kong shares dropped on Monday, taking their cues from weakness in global markets as concerns mount over the health of major economies.

By midday, the Shanghai Composite Index declined 1 percent to 2,351.39 points, set for the biggest percentage fall since Sept. 22, while the CSI300 of the leading Shanghai and Shenzhen A-share listings also dropped 1 percent.

The Hang Seng Index dropped 0.6 percent to 22,940.82 points. The China Enterprises Index of the top Chinese listings in Hong Kong fell 1 percent.

Analysts said the drop in Hong Kong was due to weakness in overseas markets but further declines were likely to be limited as investors await upcoming Chinese economic data over the next two weeks.

"Investors are not too bullish or bearish at this moment," said Alex Wong, a director at Ample Finance Group in Hong Kong. "They are cautious and taking a wait-and-see attitude."

Highlighting worries over the global economy, Federal Reserve Governor Daniel Tarullo said on Saturday that downside risks to the global economy was a factor that U.S. monetary policy would need to take into account even as the American economy recovers.

Among top losers in the Hong Kong market, PetroChina dipped 2.3 percent, Kunlun Energy dropped 3.6 percent, and Lenovo Group fell 3.6 percent.

Chinese developer Agile Property Holdings Ltd. resumed trading on Monday after a week-long suspension. Its shares plunged 20.8 percent by midday after the company said on Friday that its chairman had been detained.

On the mainland, shares were weighed down after 16 companies published initial public offering (IPO) prospectuses over the weekend, analysts said.

"Investors are locking up money to prepare to buy new shares," said Zhang Yanbin, analyst at Zheshang Securities in Shanghai.

All 16 banking shares on the mainland fell, with China Citic Bank Corp dropping 1.3 percent and China Minsheng Banking Corp down 1.4 percent.