* SSEC -1.8 pct, CSI300 -2.0 pct, HSI +0.5 pct
* Profit-taking pushes blue chips lower in China
By Sue-Lin Wong
SHANGHAI, Jan 8 (Reuters) - China stocks tumbled by midday Thursday, heading for its biggest one-day percentage drop in over two weeks, as profit-taking hit blue chips such as financials which have enjoyed a strong run recently.
The CSI300 index fell 2.0 percent to 3,571.14 points at the end of the morning session, while the Shanghai Composite Index lost 1.8 percent to 3,314.75 points.
“The profit-taking is one factor why the market is falling today. Furthermore, the momentum for blue-chips seems to have weakened because of shrinking turnovers,” said Du Changchun, an analyst at Northeast Securities in Shanghai.
“It probably also points to the diminishing enthusiasm mainland investors have for these stocks.”
The financial sub-index, which has risen around 6.5 percent in the past two weeks, declined 3.5 percent. Huatai Securities plummeted 7.1 percent and Founder Securities fell 5.4 percent.
Many small cap shares rose with Shenzhen’s Nasdaq-style ChiNext board gaining 1.1 percent.
Hong Kong stocks continued to edge up, tracking a rise on Wall Street and expectations of further monetary policy easing in Europe.
The Hang Seng index added 0.5 percent to 23,808.21 points. The Hong Kong China Enterprises Index gained 0.3 percent to 12,022.35.
“People are switching out of A-share-related products and getting back into those traditional blue chips,” said Alex Wong, director at Ample Finance Group.
“That’s why the Hang Seng index is strong and the China Enterprises Index is weak.”
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 128.61.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.
Total volume of A shares traded in Shanghai was 22.34 billion shares, while Shenzhen volume was 9.37 billion shares.
Total trading volume of companies included in the HSI index was 0.9 billion shares.
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Additional reporting by Shanghai newsroom; Editing by Shri Navaratnam