China stocks drop after poor economic data, Hong Kong lower
* CSI300 -2.6 pct; SSEC -2.4 pct; HSI -2.8 pct
* China industrial firms' profits drop 0.3 pct in June
* HK shares fall, joining regional markets as US rate rise looms
SHANGHAI, July 27 (Reuters) - China stocks fell sharply on Monday morning as a government-triggered rebound petered out, with attention shifting back to weak fundamentals and lacklustre economic data.
Hong Kong stocks also slumped, as Asian markets were generally softer after losses on Wall Street and worries over China, while investors also braced for a looming increase in U.S. interest rates.
The CSI300 index fell 2.6 percent, to 4,069.73 points at the end of the morning session, while the Shanghai Composite Index lost 2.4 percent, to 3,971.53 points.
Hong Kong's benchmark Hang Seng index dropped 2.8 percent.
"A rapid, post-rout rebound in mainland 'A' shares has ended, and the market has entered a stage of fluctuations, with investor sentiment increasingly unsteady," fund manager Yang Delong at China Southern Asset Management wrote.
He added that with many companies set to release their first-half earnings soon, performance of stocks will diverge depending on their performance. Continuación...