Allianz Global Investors claims the fragile UK economy should deter investors from buying into Lloyds Banking Group, despite the government's sale of another chunk of its stake in the bank.Lloyds, which is undergoing an overhaul to focus it on lending to UK individuals and businesses, had finite scope to expand in Britain due to the indebtedness of the economy, Allianz said.Allianz's UK equities portfolio manager Simon Gergel said: "The growth prospects for Lloyds in the UK are limited as the economy is mature."We believe low interest rates and high levels of consumer and government debt will restrain economic growth and the demand for further credit."The agency overseeing the Treasury's stake in Lloyds, UK Financial Investments (UKFI), on Wednesday confirmed that the government had sold equity worth £4.2bn in Lloyds, reducing its holding in the bank to 24.9% from 32.7%.Allianz said the sale did not change the investment case for Lloyds, which it said was fully valued.Gergel said: "The government's placing is no reason to buy the stock - it does not change the fundamental picture - we don't see much value there."They already trade at a significant premium to book value and have only modest growth prospects, compared to say HSBC which looks cheaper and has better structural growth opportunities."Allianz said Lloyds was less attractive as an investment than rival HSBC, which had greater exposure to growth regions of the world, such as Asia.PW