* CSI300 -0.6 pct; SSEC -0.2 pct; HSI -0.4 pct
* China may see its most boring trading week in 3 yrs -analyst
* IPO reform, expiration of share sale ban weigh on investors' mind
SHANGHAI, Dec 28 (Reuters) - China stocks fell in thin trading on Monday morning, as weak November industrial profit data and a looming revamp of the country's initial public offering (IPO) system gave investors little reason for optimism.
Hong Kong stocks also moved lower, in tiny volume, after the market resumed trading following Friday's Christmas holiday.
China's blue-chip CSI300 index fell 0.6 percent, to 3,816.81 points by the lunch break, while the Shanghai Composite Index lost 0.2 percent, to 3,620.77 points.
"This could be the most boring trading week over the past three years," said Shen Zhengyang, strategist at Northeast Securities, noting investors currently have a "wait-and-see" attitude toward market developments.
One major source of concern is the potential impact of imminent IPO reform, which could see China moving from its current approval-based system, toward a U.S. style registration-system, potentially boosting share supply.
In a major step toward reform, China's top legislature on Sunday approved the IPO reform proposal, authorising the government to kick-off the changes as early as March.
Investors are also worried about the expiration on Jan. 8 of a six-month share sales ban for listed companies' major shareholders, which could increase selling pressure on the market.
In addition, economic data released on Sunday offered little confidence for investors about China's economic health.
Profits earned by Chinese industrial companies in November fell 1.4 percent from a year earlier, marking a sixth consecutive month of decline, although the figures improved from October's 4.6 percent fall.
Most sectors lost ground, with banking stocks leading the decline. But Shenzhen's start-up board ChiNext rebounded.
And as part of efforts to widen companies' financing channels, Shanghai's local over-the-counter equity exchange on Monday launched a high-tech board, days after the government said the Shanghai Stock Exchange would launch a board for firms in emerging industries.
In Hong Kong, the Hang Seng index dropped 0.4 percent, to 22,047.44 points, while the Hong Kong China Enterprises Index lost 0.7 percent, to 9,881.73.
Shares of China Telecom Corp Ltd lost 1.1 percent, after China's anti-corruption watchdog said on Sunday that the company's Chairman, Chang Xiaobing, is being investigated for alleged disciplinary violation.
Editing by Sam Holmes