China small-caps drop on tighter supervision; HK dragged by energy sector
* CSI300 -0.3 pct; SSEC -0.2 pct; HSI -1.6 pct
* China market rebound has priced in much of policy hopes-investor
* Hong Kong energy shares slump on lower oil prices
SHANGHAI, Feb 24 (Reuters) - China stocks were easier on Wednesday morning, with sentiment eroded by a slump in Shenzhen's start-up board where the market will come under greater regulatory scrutiny.
Hong Kong shares also sagged, tracking global markets, and were dragged down by the energy sector after oil prices pulled back.
The blue-chip CSI300 index fell 0.3 percent, to 3,079.12 points by lunch break, while the Shanghai Composite Index lost 0.2 percent, to 2,897.25 points.
The market has rebounded roughly 10 percent over the past month, propelled by a bounce in global markets, signs of yuan stabilisation, and policy expectations ahead of a meeting by China's legislature that starts March 5.
However, Zhang Chen, strategist at Shanghai Maoshuo Asset Management Co, expected the rebound to lose some steam, with its sustainability hinging largely upon whether policies announced during the National People's Congress (NPC) gathering could exceed expectations.
"The market will become more volatile as much of the policy expectation has been priced in, so if policies fail to excite investors, the market may fall again," Zhang said. Continuación...