China stocks retreat on weak loan data; Hong Kong down on weaker currency
* CSI300 -1.5 pct; SSEC -1.5 pct; HSI -0.8 pct
* China Dec new yuan loan much lower than expected
* HK dollar falls to 4-year low, triggering outflow fears
SHANGHAI, Jan 15 (Reuters) - China stocks lost ground on Friday morning, giving up much of the previous day's 2 percent gain, as investors continued to reduce equity exposure with weaker-than-expected loan data offering little evidence of an economic recovery.
Hong Kong stocks also fell, led by property shares, as a tumble in the Hong Kong dollar raised fears of a possible increase in interest rates.
The CSI300 index fell 1.5 percent, to 3,172.53 points by lunch break, while the Shanghai Composite Index also lost 1.5 percent, to 2,961.47 points, again breaching the psychologically key 3,000-point mark.
SSEC's 2,900 points is "a fair trading value" around which the Shanghai market will likely fluctuate with a 400-point range in either directions, according to Hong Hao, managing director at BOCOM International.
"Its close parallel with the NASDAQ bubble (in 2000) suggests it can fall further to 2,500, after a technical reprieve," Hong wrote on Friday.
"The crowd is still keen to pounce on Shanghai's great fall, and as such the final stage of market revulsion is yet to come." Continuación...