China stocks fall, led by ChiNext, on margin tightening; Hong Kong down too
* CSI300 -1.7 pct; SSEC -1.8 pct; HSI -1.4 pct
* Another brokerage tightens margin financing; ChiNext slumps
* Banking shares firm on reform hopes
SHANGHAI, June 4 (Reuters) - China stocks fell on Thursday morning, with investor sentiment soured by signs that more brokerages are starting to tighten margin trading, though banking shares gained on reform hopes.
The CSI300 index fell 1.7 percent, to 5,055.08 points at the end of the morning session and the Shanghai Composite Index lost 1.8 percent, to 4,822.42 points. Hong Kong stocks fell at a slightly slower pace.
Shenzhen's start-up board ChiNext, the bellwether of this round of the mainland's bull run, slumped 3.7 percent.
Small-sized brokerage Golden Sun Securities said on Thursday that to control risks, it would suspend margin financing for purchases of ChiNext shares.
The announcement came a day after Industrial Securities suspended lending to clients to buy shares in certain stocks, triggering fears that the trend of "deleverage" will accelerate amid tighter regulatory scrutiny.
Hou Yingming, strategist at AJ Securities, said the correction is natural, after the market's huge gains this year. Continuación...