China stocks dip but Hong Kong gains as US rate hike fears ease
* CSI300 -0.2 pct; SSEC -0.2 pct; HSI: +0.8 pct
* Expectations of Fed rate hike reduced after Yellen speech
* Shares of FAW units slump for 2nd day on delayed restructuring
SHANGHAI, June 7 (Reuters) - China stocks edged lower on Tuesday, bucking gains in Hong Kong and other Asian markets amid diminishing expectations of U.S. interest rate hikes in coming months.
Both China's blue-chip CSI300 index and the Shanghai Composite Index lost 0.2 percent by the midday break, to 3,174.14 points and 2,929.79 points, respectively.
But Hong Kong shares rose, inspired by upbeat global markets, after U.S. Federal Reserve Chair Janet Yellen gave a largely upbeat assessment on the U.S. economic outlook, but gave few hints on when to increase interest rates.
To some investors, the absence of a time frame in Yellen's remarks on Monday remarks suggests the Fed will delay its next rate hike well beyond next week.
Wang Yi, strategist at Great Wall Securities, expected China's market to pick up eventually as the fears of an imminent U.S. rate hike recede and on hopes that Beijing will accelerate its long-promised reforms for bloated and inefficient state enterprises.
Investors also hope MSCI will decide next week to add some China "A" shares to its emerging market index. Continuación...