REFILE-Banks drag China indexes lower on debt-to-equity swap plan; Hong Kong up

viernes 11 de marzo de 2016 00:35 GYT

(Corrects day to Friday in 10th paragraph)

* CSI300: -0.2 pct; SSEC: -0.3 pct; HSI: +0.8 pct

* China's debt-to-equity swap for banks seen by some as negative

* China stock investors reduce leverage during the recent rally

SHANGHAI, March 11 (Reuters) - China stocks softened on Friday morning, weighed down by the banking sector, as Beijing's plan to allow debt-to-equity swaps by commercial lenders was viewed by some investors as being largely negative.

But the mood was more upbeat in Hong Kong, where shares drew some support from stronger-than-expected monetary stimulus from the European Central Bank (ECB).

The blue-chip CSI300 index fell 0.2 percent, to 3,007.57 points by lunch break, while the Shanghai Composite Index lost 0.3 percent, to 2,797.84 points.

Banks led the fall, with the banking sector sub-index losing more than 1 percent.

Sources told Reuters late on Thursday that China plans to ease banks' bad debt burden by allowing them to swap non-performing loans (NPL) for equity in borrowers.   Continuación...