* SSEC -0.2 pct, CSI300 -0.3 pct, HSI -0.8 pct
* China factory growth fastest in 3 months as new orders,
* C.bank skips OMOs for the sixth day
SHANGHAI, June 30 (Reuters) – China stocks fell on Friday
morning, despite a survey showing the country’s manufacturing
sector expanded at the quickest pace in three months in June.
The CSI300 index fell 0.3 percent, to 3,658.42
points at the end of the morning session, while the Shanghai
Composite Index lost 0.2 percent, to 3,182.41 points.
The market reaction seemed largely muted to a survey showing
the manufacturing sector expanded at the quickest pace in three
months in June, buoyed by strong production and new orders.
The services sector also posted its best performance since
March, another official NBS survey found.
Worries over liquidity conditions lingered, after China’s
central bank skipped open market operations for the sixth day in
a row on Friday, citing “relatively high” liquidity levels in
the banking system.
For the week, the bank drained a net of 330 billion yuan
($48.77 billion) from the market, the most since February.
“The market will remain rangebound for the time being, in
thin trading,” Shenwan Hongyuan Securities wrote in a report.
Investors should be cautious as liquidity remains tight at
the quarter end, the brokerage added.
Most sectors were little changed at midday, while financial
Hong Kong stocks followed other Asian stocks lower.
The Hang Seng index dropped 0.8 percent, to 25,754.84
The Hong Kong China Enterprises Index lost 0.6
percent, to 10,375.00.
($1 = 6.7666 Chinese yuan renminbi)
(Reporting by Samuel Shen and John Ruwitch; Editing by Simon