China, Hong Kong stocks fall as recent rally shows signs of fatigue
* SSEC -0.7 pct, CSI300 -0.8 pct, HSI -0.7 pct
* Valuations in HK, China look stretched - Deutsche Bank
* China property shares fall after Nanjing home purchase curbs
SHANGHAI, Sept 26 (Reuters) - China and Hong Kong stocks started the week on a bearish note, tracking Asian markets lower on Monday morning, as their recent rally showed signs of fatigue.
The markets' sluggish performance came after losses on Wall Street and as investors turned their attention to American politics ahead of the first U.S. presidential debate.
China's blue-chip CSI300 index fell 0.8 percent, to 3,250.53 points by the lunch break, while the Shanghai Composite Index lost 0.7 percent, to 3,012.34 points.
In Hong Kong, both the Hang Seng index and the Hong Kong China Enterprises Index fell 0.7 percent.
"There is still some room for further rallies, despite the indices showing a few signs of fatigue," Christian Nolting, Global Chief Investment Officer at Deutsche Bank Wealth Management wrote, citing relative attractive dividends in China and Hong Kong.
"Nonetheless, valuations look stretched at the moment. Any further rally in China and Hong Kong equities may therefore require earnings to improve. At the same time, policy and economic uncertainty in the rest of the world represent a downside risk for equity markets in general." Continuación...