Last checked at 
* HSI -1.3 pct, H-shares -2.3 pct, CSI300 -2.6 pct
* One China bank may have halted property loans - mainlandnews report
* China Vanke tests 5-year low; cement, banks dive too
* Belle International rises on positive 2013 earnings
By Clement Tan
HONG KONG, Feb 24 (Reuters) - China shares tumbled to theirlowest in two weeks early on Monday, hurting Hong Kong markets,roiled by mainland news reports saying banks have beguntightening property loans.
China Vanke dived more than 6 percent after theofficial Shanghai Securities News reported on Monday thatIndustrial Bank may have stopped some types ofproperty-related loans, though several other banks have leftproperty-loan policies unchanged.
"I would get out of interest rate-sensitive sectors. It'svery hard to navigate right now with policy risk on the rise,"said Hong Hao, Hong Kong-based chief equity strategist at Bankof Communication International.
"Property prices in many cities are still rising and that'snot a good sign coming ahead of the annual parliamentarymeetings that start next week," Hong added. Those meetings aredue to start March 5 in Beijing.
At midday, the CSI300 of the biggest Shanghai andShenzhen A-share listings was down 2.6 percent to its lowestsince Feb. 7, while the Shanghai Composite Index slid 2percent to its lowest since Feb. 10.
The China Enterprises Index of the top Chineselistings in Hong Kong shed 2.3 percent. The Hang Seng Index sank 1.3 percent to 22,279 points, slipping back belowits 200-day moving average, which it rose above a week ago.
Mainland losses came in hefty volumes. Midday Shanghaivolumes were at their strongest in two months after officialdata showed average new home prices rose 9.6 percent in China's70 major cities in January from a year earlier. The increase wasthe lowest in 14 months.
Poly Real Estate slumped 8.2 percent in Shanghaiand Gree Real Estate the maximum 10 percent as theShanghai property sub-index slid 5.7 percent, headed forits biggest single-day loss in about eight months.
China Vanke, the country's largest developer bysales, dived as much as 7.5 percent in Shenzhen to its lowestsince January 2009. In Hong Kong, China Resources Land and Shimao Property each sank more than 7 percent.
The Shanghai Securities News said there may be no new loansextended at Industrial Bank until the end of March. Tighteningfears have existed for months, analysts said, but Monday'sselloff was less pronounced in the credit markets, compared withthe stock markets.
Industrial Bank shares declined 3.2 percent in Shanghai,while China's biggest cement producer Anhui Conch Cement tumbled 4.4 percent in Hong Kong and 5.2percent in Shanghai.
EARNINGS FOCUS
Shares of Belle International rose 3.1 percent inHong Kong after the China-focused shoe retailer posted a 3.2percent increase in 2013 net profit. Belle's result buoyed rivalDaphne International, whose shares climbed 2.6percent.
HSBC Holdings shares slipped 0.6 percentahead of its 2013 full year earnings later in the day. Thestock, now down 0.3 percent in 2014, is currently trading at 11times forward 12-month earnings, a 13 percent discount to itshistorical median, according to Thomson Reuters StarMine.
In the last 30 days, nine of 31 analysts have downgradedtheir 2013 earnings-per-share estimates for HSBC by an averageof 5.5 percent, according to StarMine.
