China stocks flat as investors take profit; Hong Kong subdued
* CSI300: flat; SSEC: +0.1 pct; HSI: flat
* China's manufacturing activity surveys within expectations
* Futures exchange says hedging caused Tuesday's flash crash
SHANGHAI, June 1 (Reuters) - China stocks were flat on Wednesday morning following the previous day's sharp rally, as growing optimism about MSCI adding mainland stocks to its emerging markets index was offset by worries over China's economy and a looming U.S. rate hike.
The blue-chip CSI300 index was unchanged at 3,169.00 points by the lunch break, while the Shanghai Composite Index gained 0.1 percent, to 2,918.78 points.
Hong Kong shares were also subdued, with the benchmark Hang Seng index unchanged and the Hong Kong China Enterprises Index up just 0.4 percent.
There was little market reaction to the official and private surveys on China's manufacturing activity, which were roughly in line with expectations, underlining doubts that the world's second-largest economy is picking up.
Li Wei, economist at Commonwealth Bank of Australia, said China's economy should be largely stable in the near term due to a supportive policy stance.
"However, gravity should reassert in Q4," he added. Continuación...