China stocks give up gains; HK shares track global markets higher
* CSI300 -0.3 pct; SSEC -0.3 pct; HSI +1.4 pct
* CSRC Vice Chairman says China doesn't seek to devalue the yuan
* Heng Seng trades at P/B ratio of 1.07, while HSCE trades at 0.9
SHANGHAI, Jan 22 (Reuters) - China stocks surrendered initial gains and ended Friday lower, threatening to hit fresh two-year lows amid extremely weak investor sentiment.
But Hong Kong shares bounced over 1 percent, led by energy shares, as investors took cues from a sharp overnight rebound in global equity markets and oil prices.
China's blue-chip CSI300 index dipped 0.3 percent, to 3,073.28 points by the lunch break, while the Shanghai Composite Index also lost 0.3 percent, to 2,872.42 points.
CSI300 is down roughly 1.5 percent so far this week, while SSEC is about 1 percent lower, while trading volume is thin.
Yu Jun, partner at hedge fund manager He Ju Investment, said that the market is in a "risk-off" mode, amid fears of economic slowdown, further yuan depreciation, and a possible share supply glut due to impending reform of initial public offerings.
"We'll likely witness a lot of volatility in the first half of the year," Yu said. "Investors are waiting for more clarity, and certainty." Continuación...