* CSI300 -0.1 pct, SSEC -0.3 pct, HSI +0.1, HSCE +0.1 pct
* Investors take profits in banking shares
* Analysts see more capital flow into mainland market
SHANGHAI, Nov 12 (Reuters) - China stocks were mixed on Wednesday, dragged down by weak mainland banking shares as investors took profits after a big rally on Tuesday, but Hong Kong indexes edged up on continuing strength in offshore-listed Chinese financials.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 3.10 points, or 0.12 percent, to 2,555.51 at the end of the morning session, while the Shanghai Composite Index lost 7.51 points, or 0.3 percent, to 2,462.16.
The move continues a correction that began on mainland exchanges at midday Tuesday, which saw indexes reverse morning gains as investors bailed out of small-cap shares, setting record high trading volumes.
The Hang Seng index added 15.88 points, or nearly 0.1 percent, to 23,824.16, while the Hong Kong China Enterprises Index gained 0.23 percent to 10,676.76.
Shares in all 16 banks listed on the mainland fell. Index heavyweight the Bank of China Ltd slumped 3.8 percent after it hit 10 percent daily limit up on Tuesday. The Industrial and Commercial Bank of China Ltd fell 1.3 percent.
“It’s quite normal for investors to take profits from previous gains,” said Cai Dagui, analyst at Pingan Securities.
He said he believed the correction would be muted as Chinese banking shares were still relatively undervalued.
Shih Wenbien, strategist at Yunta Securities in Shanghai, said Hong Kong shares were still rising thanks in part to inflows from U.S.-listed funds positioning themselves for the launch of the Shanghai-Hong Kong stock connecter pilot programme next Monday.
He added that domestic investors were excited by signs of further action on reform of state-owned enterprises (SOEs), the New Silk Road Economic Belt and the Asia Infrastructure Investment Bank, the latter of which is expected to drive business to infrastructure companies.
Total volume of A-shares traded in Shanghai was 14.34 billion shares, while Shenzhen had 7.05 billion shares.
In Hong Kong, total volume at midday was 35.64 billion shares.
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong lost 1.03 points to 101.2. A value above 100 indicates Shanghai shares are priced at a premium to those of the same company trading in Hong Kong, and a level below 100 shows a premium for the Hong Kong shares. (Reporting by Pete Sweeney, Chen Yixin and the Shanghai Newsroom; Editing by Richard Borsuk)