* HSI -1.3 pct, H-shares -1.8 pct, CSI300 -1.7 pct
* 12 IPOs expected to lock up 600 billion yuan
* Agile Property plunges after rights issue plan
* Prada at more than 2-year low on H1 profit drop (Updates to midday)
By Grace Li
HONG KONG, Sept 22 (Reuters) - Hong Kong shares slumped to two-month lows on Monday, as investors fretted that a preliminary factory survey on Tuesday could provide more evidence of a slowdown in China.
China shares suffered a further blow with 12 initial public offerings (IPOs) starting to take subscriptions this week. That is expected to lock up 600 billion yuan ($97.75 billion) in funds, according to a National Business Daily report, aggravating quarter-end liquidity pressures.
At midday, the Hang Seng Index was off 1.3 percent at 23,983.82 points, lowest since July 23. The China Enterprises Index of the top Chinese listings in Hong Kong slid 1.8 percent to its lowest since July 22.
The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 1.7 percent, while the Shanghai Composite Index was down 1.5 percent at 2,294.91 points.
"The markets are under pressure as people expect tomorrow's HSBC flash manufacturing managers' index (PMI) won't be good," said Zhang Yanbin, an analyst from Zheshang Securities in Shanghai. "The IPOs are also diverting money from the market."
China's September flash manufacturing PMI reading on Tuesday could come in below the 50 level, indicating that manufacturing activity is contracting. The median of a Reuters poll was 50.0, which is the demarcation point between expansion and contraction.
China will not dramatically alter its economic policy because of any one economic indicator, Finance Minister Lou Jiwei said on Sunday. His remarks came days after many economists lowered growth forecasts following the latest set of weak data.
Index heavyweights were battered. In Hong Kong, Tencent Holdings and PetroChina each shed 2.1 percent while Industrial and Commercial Bank of China sank 1.4 percent in Shanghai.
Agile Property Holdings plummeted 6.9 percent after the Chinese developer said it is proposing to raise about HK$2.79 billion ($359.94 million) through a rights issue plan.
Shares of Prada SpA, for which China is an pivotal market, dived 4.5 percent to their lowest in 26 months after the luxury goods maker reported late on Friday that first-half profit fell 21 percent.
China Galaxy Securities skidded 5.3 percent after the brokerage said its chief officer of fixed income and two other employees had been asked to cooperate with a judicial authority regarding personal matters.
Stocks related to Alibaba Group, whose shares ended up 38 percent on massive volume in Friday's New York debut, also dropped.
"People are worrying about whether the share price of Alibaba can be sustained at the high level," said Steven Leung, sales director at brokerage UOB Kay Hian in Hong Kong. (1 US dollar = 6.1380 Chinese yuan) (1 US dollar = 7.7513 Hong Kong dollar) (Editing by Richard Borsuk)