August 16, 2017 / 4:28 AM / a year ago

China stocks down on weaker growth outlook; Hong Kong gains

* SSEC -0.2 pct, CSI300 -0.3 pct, HSI 0.7 pct

* Slower loan growth leads to concerns over Q3 growth prospects

* Hong Kong lifted by dairy stocks, banks

SHANGHAI, Aug 16 (Reuters) - China stocks were lower on Wednesday morning as investors booked profits amid weakening sentiment, a day after data showed slower loan growth in July.

The CSI300 index fell 0.3 percent to 3,695.26 at the end of the morning session, while the Shanghai Composite Index lost 0.2 percent to 3,245.31.

China CSI300 stock index futures for August rose 0.1 percent to 3,690, 5.26 points below the current value of the underlying index.

“From July data we can see a definite pullback in the economy, which is making investors reconsider their growth expectations for the third quarter,” said Cao Xuefeng, head of research at Huaxi Securities in Chengdu. “This is particularly affecting cyclical sectors.”

China’s new loans in July fell to their lowest in 8 months, reinforcing views economic activity will slow in the second half.

Materials firms are taking the brunt of selling. The CSI300 materials sub-index has fallen 1 percent.

Xiamen Tungsten Co Ltd fell 2.9 percent in morning trade, while China Northern Rare Earth Group High-Tech Co Ltd is 5.2 percent lower and Jinduicheng Molybdenum Co Ltd is down 2.5 percent.

Anxin Trust Co Ltd had the largest drop among CSI300 components, falling 6.8 percent after announcing a 15.7 percent rise in H1 net profit. Anxin Trust shares had previously gained 36 percent since the beginning of June.

The Hang Seng index, which succumbed to selling pressure late Tuesday, added 0.7 percent, to 27,354.24.

China Mengniu Dairy Co Ltd is up 5.6 percent and Industrial and Commercial Bank of China Ltd is 1.8 percent higher.

The Hong Kong China Enterprises Index gained 0.7 percent to 10,814.91.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 127.51.

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.

Reporting by Andrew Galbraith; Editing by Gopakumar Warrier

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