China stocks flat as rebound peters out; Hong Kong shares drop
* CSI300 +0.2 pct; SSEC +0.3 pct; HSI -0.9 pct
* Investors face mounting uncertainty - analyst
* Barclays sees attractive valuations in China banks
SHANGHAI, Sept 24 (Reuters) - China stocks ended Thursday morning roughly flat as an early morning rebound lost momentum, reflecting how investor confidence in the economy remains shaky.
Hong Kong shares continued to slide, after the benchmark index broke through a key technical support level during the previous session's tumble.
"Investors are facing mounting uncertainty," said Hong Hao, chief China strategist at Bocom International Holdings Co.
He added that the Federal Reserve's decision to hold rates last week is sending a signal that the economy is not good, so "deteriorating fundamentals pose the biggest risk to equity markets".
China's key indexes had a good start, with the SSEC up 1.1 percent at one point, but gains were then pared.
At lunchtime, the CSI300 index was up 0.2 percent, to 3,269.52 points, while the Shanghai Composite Index gained 0.3 percent, to 3,124.17 points. Continuación...