China stocks drop into correction territory; Hong Kong up

viernes 19 de junio de 2015 01:01 GYT

* CSI300 -1.6 pct; SSEC -2.1 pct; HSI +1.1 pct

* Falls rooted in margin loan tightening, worsened by IPOs

* Less room seen for money easing after May home price data

* Infrastructure, transport stocks lead declines

By Samuel Shen and Pete Sweeney

SHANGHAI, June 19 (Reuters) - China's stock markets continued a sharp correction on Friday morning, with main indexes heading for their biggest weekly fall in seven years amid worries that the fuel for an eight-month bull run is disappearing.

The key CSI300 index fell 1.6 percent by midday, while Shanghai's benchmark SSEC lost 2.1 percent. At midday, both indexes were down more than 9 percent for the week.

At the end of the morning, the CSI300 was at 4,852.39 points and the SSEC at 4,687.32 points, both down about 10 percent from their June peak, a level seen by some as suggesting the market has entered a technical correction.

This week's correction was triggered by regulators' fresh moves to tighten margin financing - a key engine of the market's frenzied rally - and worsened by a tidal wave of initial public offerings that greatly increase share supply.   Continuación...