* HSI +0.1 pct, H-shares -0.3 pct, CSI300 -0.6 pct
* China shares fall on econ worries, liquidity situation
* Hong Kong rebounds, cheered by casinos
By Kazunori Takada
SHANGHAI, Oct 17 (Reuters) - China shares fell by midday on Friday, on track for their biggest weekly decline in four months, hit by worries over the economy as well as expected tightness in liquidity ahead of a slew of new share offerings.
Hong Kong shares rebounded slightly, tracking a recovery in global markets, as casino stocks gained on upbeat earnings.
The market has entered a correction phase after rising more than 10 percent during the July-September quarter, analysts said.
“I expect this correction phase will be a bit longer than usual as worries over the economy are still overwhelming,” said Xiao Shijun, an analyst at Guodu Securities in Shanghai.
The Shanghai Composite Index fell 1.1 percent to 2,331.4 points by midday while the CSI300 of the leading Shanghai and Shenzhen A-share listings also shed 0.6 percent.
For the week, the indices were down 1.8 percent and 1.5 percent, the biggest weekly decline since mid-June.
A series of economic data for September released this week have been mixed, suggesting the economy is continuing to cool but not as sharply as some had feared previously.
More data, including industrial output, will be released on Oct. 21 along with third-quarter GDP, which is expected to show the economy grew at its weakest pace in more than five years as sluggish domestic demand and a rapidly cooling property market weighed on other sectors.
Many analysts expect the government to release more industrial support policies and reform measures, which could help turn negative sentiment in the market.
Worries over expected tightening in liquidity also weighed on shares, as a number of companies are expected to launch IPOs next week, traders said.
The pharmaceutical sector fell as investors took profits on shares such as Hubei Guangji Pharmaceutical Co Ltd and Jiangsu Lianhuan Pharmaceutical Co Ltd, which had gained on speculation that the government could roll out policies to fight the Ebola virus.
Telecommunication shares also dragged the index lower, with Shanghai Potevio Co Ltd losing 5.7 percent, and Beijing Miteno Communication Technology Co Ltd falling 7.3 percent.
Horse-racing-related shares were the biggest gainers on speculation the government will announce more policy measures to support the growth of the industry following news that the first jockey club in China has been launched in Beijing.
Shanghai Nine Dragon Tourism Co Ltd and Shanghai Ya Tong Co Ltd jumped by their 10-percent daily limit.
In Hong Kong, the Hang Seng Index rebounded 0.1 percent to 22,930.02 points by midday, although it is set to fall 0.7 percent for the week.
Casino shares gained after Sands China Ltd posted solid third-quarter results. Sands rose 4.2 percent while Galaxy Entertainment Group Ltd gained 3.6 percent.
Linus Yip, chief strategist at First Shanghai Securities in Hong Kong, said Sands China’s quarterly results, which were in line with expectations, injected confidence into the sector after shares fell steeply over the past several months.
“It had dropped too much so maybe it’s time to have some rebound,” he said.
Mainland shares capped gains in the overall market, with the China Enterprises Index of the top Chinese listings in Hong Kong falling 0.3 percent. (Reporting by Shanghai Newroom; Editing by Jacqueline Wong)