SHANGHAI, Nov 28 (Reuters) - China stocks fell for a second straight day on Tuesday as investors assessed the impact of sweeping new guidelines to reduce risks in the country's asset management business.
UBS Securities said in a report that the rules, which were designed to rein in shadow banking, would make it more difficult for funds with added leverage to enter the stock market, although some equity assets could become more appealing.
** The CSI300 index fell 0.7 percent, to 4,020.94 points at the end of the morning session, while the Shanghai Composite Index lost 0.5 percent, to 3,305.96.
** The Hang Seng index dropped 0.9 percent to 29,420.94. The Hong Kong China Enterprises Index lost 1.5 percent, to 11,591.50. The South China Morning Post reported that China's securities regulator will suspend approval of new mutual funds which are heavily weighted to Hong Kong-listed equities on fears of a market correction. Such flows have helped boost Hong Kong indexes to a decade high.
* The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 130.24.
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.
** The northbound quota for the Hong Kong-Shanghai Stock Connect , currently set at 13 billion yuan, saw net inflows of 13.00 billion yuan.
** Total volume of A shares traded in Shanghai was 6.32 billion shares, while Shenzhen volume was 7.38 billion shares.
Total trading volume of companies included in the HSI index was 0.7 billion shares.
** Around the region, MSCI's Asia ex-Japan stock index fell 0.46 percent while Japan's Nikkei index was down 0.26 percent.
(Reporting by Shanghai Newsroom; Editing by Kim Coghill)