China stocks fall on doubts about economic recovery; Hong Kong down too

miércoles 20 de abril de 2016 00:57 GYT

* CSI300 -2.3 pct; SSEC -2.6 pct; HSI -1.1 pct

* Doubt grows on how well China economy is recovering

* Shanghai index falls below 3,000, a technical support level

SHANGHAI, April 20 (Reuters) - China stocks tumbled more than 2 percent on Wednesday morning, as investors sceptical about how much the country's economy is reviving took profits on shares that have rebounded since early March.

If the losses deepen in the afternoon, Wednesday could be the worst day for China indexes since the end of February.

Thursday's gloomy sentiment spread to Hong Kong, where key indexes lost over 1 percent despite overnight gains by markets in the United States and Europe.

The Shanghai Composite Index slumped 2.6 percent by lunch break, to 2,965.31 points, falling below 3,000 - seen by many as a key technical support level. The blue-chip CSI300 index fell 2.3 percent, to 3,163.42 points.

The market had bounced roughly 15 percent off Feb. 29 lows, buoyed by upbeat first-quarter economic data, including industrial profit, housing prices and new loan growth.

But the rebound risks losing momentum, amid growing doubt over China's recovery, which some argue has been debt-fuelled and is unsustainable.   Continuación...