China stocks fall on weak industrial data, IPO reform; HK down in thin trading
* 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. Continuación...