* CSI300 -0.7 pct; SSEC -0.7 pct; HSI +0.2 pct
* China economy shows positive signs but pressure persists-premier
* China index dragged lower by property, IT shares
SHANGHAI, April 12 (Reuters) - China’s main stock indexes edged down on Tuesday morning, dragged lower by property and tech shares, as investors took profit from the previous session’s more than 1 percent rally.
But Hong Kong shares were firm, taking cues from some buoyant markets in the region such as Japan.
The blue-chip CSI300 index fell 0.7 percent, to 3,208.95 points by the lunch break, while the Shanghai Composite Index also lost 0.7 percent, to 3,014.20 points.
In Hong Kong, both the Hang Seng index and the Hong Kong China Enterprises Index added 0.2 percent.
Chinese Premier Li Keqiang said on Monday that the country’s economy has shown more positive signs but downward pressures still persist, vowing to take steps to deal with overcapacity.
Such positive signs in the economy has helped fuel a six-month rally in Chinese stocks, but with the main index having rebounded roughly 14 percent from its February low, investors are getting cautious.
“We could be near the end of the rebound, because encouraging first-quarter data has been largely priced in, but whether the economic recovery is sustainable is a big question mark,” said Wang Mingli, strategist at Guoyuan Securities.
He said another bout of panic-selling could not be ruled out in the following months, something that could be triggered either by disappointing economic data in the second quarter, or even external factors such as renewed volatility in currency markets.
Mainland stocks fell across the board, led by IT , telecommunications and property shares.
Small caps were among the biggest decliners, with Shenzhen’s start-up board ChiNext slumping 1.7 percent.
But resource shares were little changed, as Premier Li reiterated that the government would quicken reforms to eliminate outdated capacity in coal and steel sectors and use “market-based” debt-to-equity swaps to help lower firms’ debt levels.
In contrast, Hong Kong shares were upbeat. All main sectors, with the exception of IT were in positive territory.
Reporting by Samuel Shen and Pete Sweeney; Editing by Jacqueline Wong