China stocks fall 1 pct after soft inflation data; Hong Kong down
* CSI300 -1.2 pct; SSEC -1.2 pct; HSI -1.0 pct
* China May inflation data weak
* Hong Kong service sector stocks slump amid fears over MERS
By Samuel Shen and Pete Sweeney
SHANGHAI, June 9 (Reuters) - China stocks slipped into negative terrain on Tuesday, easing off new seven-year highs hit the previous day, as some investors took profit after soft inflation data suggested the economy was still struggling.
The CSI300 index and the Shanghai Composite Index were both down 1.2 percent by midday, reversing the morning's gains. Hong Kong's benchmark Hang Seng index dropped 1.0 percent.
China's consumer inflation eased in May, while producer prices fell for the 38th straight month, raising concerns about growing deflationary pressures as the economy cools.
Although recent weak economic data strengthened the view for more monetary easing, analysts said such expectations had already been fully priced into stock prices.
"There's already ample liquidity in the stock market," said Chen Zhizhong, strategist at China Merchant Securities. Continuación...