* HSI -0.75 pct, HSCE -1.02 pct, CSI300 -0.64 pct, SSEC -0.41 pct
* Profit-taking, IPOs due next week weigh on indices
* Shares of HKEx, heavyweight financials fall
HONG KONG/SHANGHAI, Nov 18 (Reuters) - Hong Kong and China shares fell on Tuesday for a second consecutive day after the debut of the landmark Hong Kong-Shanghai trading link as investors continued to lock in profits in stocks that had risen sharply ahead of the launch.
The Hang Seng Index lost 177.33 points, or 0.75 percent, to 23,619.75 at midday. The China Enterprises Index of top Chinese listings in Hong Kong fell 1 percent.
The Shanghai Composite Index dropped 0.41 percent to 2,463.76 points. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.64 percent.
"Profit-taking pressure is weighing on the index today as the market has accumulated a considerable amount of gains during the run-up to the launch," said Zhang Qi, Shanghai-based analyst at Haitong Securities, adding the correction may last two to three weeks.
Hong Kong shares have rallied nearly 15 percent since the scheme was announced in April, while Shanghai shares have risen by a quarter over that period.
"Also, a round of IPOs will be launched next week causing a short-term liquidity squeeze. Investors typically sell some stocks to get money back in order to invest in new ones," said Haitong's Zhang.
Around 20 percent of the daily 13 billion yuan ($2.12 billion) "northbound" quota - which limits how much Hong Kong-based investors can buy in Shanghai - had been used by mid-afternoon trading. But only around 3 percent of the 10.5 billion yuan "southbound" quota was taken up.
The so-called Stock Connect scheme gives foreign and Chinese retail investors unprecedented access to each of the two exchanges, which some analysts said could eventually lead to the creation of the world's third-largest share bourse.
Hong Kong Stock Exchange, the stock most actively traded and the top loser by value on the main bourse, fell 2.8 percent as traders contemplated new growth drivers for the exchange. Its shares have gained 67 percent since the announcement of the stock connect scheme in April.
"The good news has been out; there is no more excitement," said Ben Kwong, head of research and director of KGI Asia in Hong Kong. "The market is turning to fundamentals."
Analysts said mainland investors were more focused on individual stocks as they were inclined to buy well-known Chinese companies including Phoenix Satellite Television Holdings and Semiconductor Manufacturing International . These firms are not part of the Hang Seng components.
In Shanghai, top financial stocks were the main drag.
The top gainers that reportedly attracted most "northbound" investment on Monday - Daqin Railway Co, Kweichow Moutai Co Ltd, SAIC Motor Corp Ltd, Ping An Insurance and Inner Mongolia Yili Industrial Group Co Ltd - succumbed to profit-taking on Tuesday. (Reporting by Clare Jim in HONG KONG, Yiling Pan and Winni Zhou in SHANGHAI; Editing by Jacqueline Wong)