China, Hong Kong stocks fall as weak yuan, Brexit worries hurt
* CSI300 -0.6 pct; SSEC -0.9 pct; HSI -1.05 pct
* Non-finance firms in worst financial shape in a decade-research
* More stimulus expected to support struggling economy
HONG KONG, July 8 (Reuters) - Stocks in China and Hong Kong fell on Friday as persistent weakness in the yuan fed fears of capital outflows at a time of deepening uncertainty about Europe's economy after Britain voted to leave the European Union last month.
Potential trouble in Europe - one of China's major export markets - could exacerbate pressure on the mainland economy as a recovery struggles to gain momentum.
The headwinds are aplenty. Listed Chinese companies other than those in the finance sector are in their worst financial shape in a decade, a research body under China's Ministry of Commerce said.
It said an index which tracks the health of 2,560 non-finance listed companies is expected to fall to a decade-low this year, which would be the fastest on-year drop in five years.
While Beijing is expected to offer more stimulus to spur activity, investors remain wary amid a global backdrop of Brexit-driven uncertainty.
"Sectors including national defence and military equipment rose today, while cyclicals fell after recent rallies," an analyst at a regional brokerage in Shanghai said. Continuación...