Amidst investors worry over global growth, China, Hong Kong shares fall

China and Hong Kong stocks softened on Friday, as investors awaited trade data for signs of recovery in the world's largest economy amid mounting worries over slowing global growth.

** The CSI300 index fell 0.8 per cent, to 3,966.85, at the end of the morning session, while the Shanghai Composite Index lost 0.4 per cent, to 3,175.84. ** The Hang Seng index dropped 0.4 per cent, to 29,732.20, while the Hong Kong China Enterprises Index lost 0.3 per cent, to 11,580.68.

** China's March trade data will be out Friday afternoon. ** China's exports are expected to have rebounded in March after a sharp drop in February, while imports likely shrank for a fourth straight month but at a more modest pace, a Reuters poll showed.

** A bigger-than-expected slowdown in China's economy is among key risks to global growth, International Monetary Fund Deputy Managing Director Mitsuhiro Furusawa warned, as G20 finance leaders gather to discuss a darkening world economic outlook. ** Most sectors lost ground on the mainland, led by materials and consumer firms.

** "The overall valuations of the A-share market and Chinese stocks listed offshore are not yet expensive, though the extent of the valuations recovery is relatively evident," investment bank CICC said in a report. ** The A-share market rally this year is mainly attributed to valuations expansion rather than a pick-up in corporate earnings, CICC pointed out.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.15 per cent, while Japan's Nikkei index was up 0.50 per cent. ** The yuan was quoted at 6.72 per U.S. dollar, 0.01 per cent weaker than the previous close of 6.719.

** The largest percentage gainers on the main Shanghai Composite index were Harbin Dongan Auto Engine Co Ltd, up 10.08 per cent, followed by Zhangjiagang Freetrade Science & Technology Group Co Ltd, gaining 10.08 per cent, and Sumec Corp Ltd, up by 10.06 per cent. ** The largest percentage losers on the Shanghai index were Shanghai Shenqi Pharmaceutical Investment Management Co Ltd, down 9.39 per cent, followed by KPC Pharmaceuticals Inc, losing 8.5 per cent, and CSSC Offshore & Marine Engineering Group Co Ltd, down by 8.23 per cent.

** So far this year, the Shanghai stock index is up 27.91 per cent, while China's H-share index is up 14.7 per cent. Shanghai stocks have risen 3.21 per cent this month. ** The top gainers among H-shares were Huaneng Power International Inc, up 2.54 per cent, followed by China Tower Corp Ltd, gaining 1.97 per cent, and China National Building Material Co Ltd, up by 1.5 per cent.

** The three biggest H-shares percentage decliners were Great Wall Motor Co Ltd, which has fallen 4.80 per cent, Guangzhou Automobile Group Co Ltd, which has lost 3.1 per cent, and Dongfeng Motor Group Co Ltd, down by 3.0 per cent. ** About 16.89 billion shares have traded so far on the Shanghai exchange, roughly 40.7 per cent of the market's 30-day moving average of 41.52 billion shares a day. The volume traded was 35.30 billion as of the last full trading day. As of 04:15 GMT, China's A-shares were trading at a premium of 25.03 per cent over the Hong Kong-listed H-shares.