* CSI300 flat; SSEC -0.2 pct; HK market suspended
* August industrial profit down 8.8 pct
* small caps rebound, outperforming blue chips
SHANGHAI, Sept 28 (Reuters) - China share markets got the week off to a tentative start, with subdued activity on Monday morning partly reflecting caution after data showed weak profits at industrial firms.
On top of the persistent signs of weakness in the economy, investors were also unwilling to plough funds into stocks ahead of China’s week-long national holidays that starts on Thursday.
Hong Kong’s market was closed on Monday for a public holiday.
The blue-chip CSI300 index was unchanged at 3,232.09 points at the end of the morning session, while the Shanghai Composite Index lost 0.2 percent, to 3,086.34 points. At one point in early trade, SSEC hit a low of 3,042.31, the weakest level since Sept. 16.
The gauges are now down roughly 40 percent from their mid-June peaks but concerns over a wobbly economy have deterred bargain hunting.
Those worries were once more underscored by data showing profits earned by Chinese industrial companies declined 8.8 percent in August from a year ago.
“Investors are very sensitive to profits,” Guotai Junan Securities Co said in its latest strategy report.
“Currently, there are few signs that corporate earnings are stabilizing.”
Still, with much of the disappointment priced in, and a series of trading restrictions still in place, the market mood has been relatively calm over the past month.
Trading in the flagship SSEC index has been confined to a narrow range - between 2,800 and 3,200 - since August 25.
But small-caps staged a strong rebound on Monday morning, shrugging off lackluster economic data.
Shenzhen’s start-up board ChiNext jumped 2.9 percent, while the CSI500 index, a barometer of small-caps, gained 1 percent.
Blue-chips, including banks, real estate and infrastructure, sagged - probably reflecting a lack of confidence among long-term value investors.
Stocks with businesses in cyber security, including Feitian Technology Ltd and Venustech Group Inc surged, after U.S. President Barack Obama said he had reached “a common understanding” with visiting Chinese President Xi Jinping on curbing economic cyber espionage.
Investors also took advantage of a deal between the U.S and China to curb emission, pushing up green tech stocks such as Ningbo Shanshan Co Ltd and Guangzhou Zhiguang Electric Co. (Samuel Shen and Kazunori Takada)