China stocks down as industrial profit growth slows sharply
SHANGHAI, June 27 (Reuters) -China stocks fell on Thursday as the country's industrial profits rose at a much slower pace in May, while investors awaited manufacturing activity data due on Sunday. Tech shares dragged Hong Kong stocks down.
** China's industrial profits rose at a sharply slower pace in May, underlining the struggles faced by the world's second-largest economy as weak domestic demand crimps overall growth.
** China's blue-chip CSI300 Index .CSI300 dropped 0.4% by the lunch break, while the Shanghai Composite Index .SSEC lost 0.5%. Hong Kong benchmark Hang Seng .HSI was down 2.0%.
** Property shares in China and Hong Kong were not reacting positively after Beijing announced steps on Wednesday to reduce the cost of buying a home.
** Meanwhile, investors are expecting that China's manufacturing activity data likely contracted for a second month in June, a Reuters poll showed on Thursday.
** At the midday break, the Shanghai Composite index .SSEC was down 0.51% at 2,957.39 points.
** China's blue-chip CSI300 index .CSI300 was down 0.41%, with its financial sector sub-index .CSI300FS higher by 0.4%, the consumer staples sector .CSI000912 down 0.85%, the real estate index .CSI000952 down 0.85% and the healthcare sub-index .CSI300HC down 1.32%.
** Chinese H-shares listed in Hong Kong .HSCE fell 2.21% to 6,334.35, while the Hang Seng Index .HSI was down 2.04% at 17,721.01.
** Tech companies traded in Hong Kong were down 2.5%, with delivery giant Meituan 3690.HK down 2.9% and E-commerce giant Alibaba down 2%.
** The smaller Shenzhen index .SZSC was down 0.85%, the start-up board ChiNext Composite index .CNT was weaker by 1.06% and Shanghai's tech-focused STAR50 index .STAR50 was down 1.42%.
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.73% while Japan's Nikkei index .N225 was down 1.00%.
** The yuan CNY=CFXS was quoted at 7.2686 per U.S. dollar, 0.03% weaker than the previous close of 7.2667.
Reporting by Shanghai Newsroom; Editing by Janane Venkatraman
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