China, Hong Kong shares depressed as yuan slides again
* CSI300 -0.4 pct; SSEC -0.5 pct; HSI: -1.8 pct
* Bosera suggests clients increase exposure to dollar assets
* Yuan devaluation hits carriers for second day; exporters surge
SHANGHAI, Aug 12 (Reuters) - China stocks slipped on Wednesday morning, after the yuan fell sharply for a second day, fuelling fears that money could flow out of the country's equity markets into U.S. dollar assets.
The yuan slid to a four-year low on Wednesday, triggering a surge in export-related stocks, but dealing further blows to sectors that rely heavily on overseas raw materials and energy.
He Kai, a fund manager of Bosera Asset Management, suggested investors increase exposure to U.S. dollar assets, as he expects the yuan to gradually depreciate in the medium to long term.
The CSI300 index fell 0.4 percent, to 4,052.19 points at the end of the morning session, while the Shanghai Composite Index lost 0.5 percent, to 3,910.30 points.
Hong Kong stocks also fell, taking their cue from the mainland and sluggish global markets.
The Hang Seng index dropped 1.8 percent, to 24,068.29 points, while the Hong Kong China Enterprises Index lost 2.0 percent, to 11,043.76. Continuación...