China stocks ease as small caps slump, Hong Kong slips
* CSI300 -0.6 pct; SSEC: -0.3 pct; HSI: -0.1 pct
* Banks surge on speculation the central bank may buy assets
* ChiNext shares slump on valuation concerns
By Samuel Shen and Kazunori Takada
SHANGHAI, April 28 (Reuters) - Chinese shares fell early on Tuesday led by a tumble in small-cap stocks, but banks surged amid speculation that China's central bank is considering buying commercial bank assets.
The People's Bank of China (PBOC) could offer more funds for state banks to buy local government bonds, some analysts suggested, a move that would be targeted more at alleviating government debt concerns than a change in monetary policy.
Officials from the central bank did not immediately respond to Reuters' request for comment.
The rumour helped fuel a sharp rally in banking shares .
"Many policies had been deemed quite unlikely before, but they eventually materialised. Investors are betting that if such a policy becomes true, banks' asset quality would be greatly improved," Chen Zhizhong, analyst at China Merchants Securities (HK) Co Ltd said. Continuación...