Hong Kong stocks fall as weak lending data fans economic slowdown concerns

Aug 12 (Reuters) - Hong Kong shares dropped on Thursday as weaker-than-expected lending data deepened China economic slowdown concerns and weighed on sentiment.

**The Hang Seng index fell 0.5%, to 26,517.82, while the China Enterprises Index lost 0.9%, to 9,465.46 points.

** China's new bank loans fell to 1.08 trillion yuan ($166.5 billion) in July, its lowest in nine months.

** Growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, slowed to 10.7% in July - the weakest reading since February 2020 - from a year earlier and from 11% in June.

** "We expect the slowdown and resulting headwind to the economy to continue in the coming months, further RRR and policy rate cuts notwithstanding," Capital Economics said in a note.

** Healthcare sector led the decline, with the sub-index finishing down 3%.

** CanSino Biologics Inc Tumbled 7.6%, Sino Biopharmaceutical Ltd lost 2.8%, Wuxi Biologics (Cayman) Inc declined 2.8%.

** The plunge of vaccine makers in U.S. market yesterday curbed risk appetite, after EU said it was looking into new possible side-effects of mRNA COVID-19 shots.

** The financials sub-index dropped 1.3%, dragged lower by insurance companies, as China's banking and insurance regulator said yesterday it would step up its scrutiny of online insurance companies.

** Chinese online insurer ZhongAn plunged 11.5%, Ping An Insurance Group dropped 2.6%, China Life Insurance Co Ltd went down 1%.

** Educational companies fell, as China said yesterday it would draft new laws on national security, technology innovation, monopolies and education.

** Private educational firm New Oriental Education & Technology Group slipped 4.1%. Its shares have slumped around 90% since this year. China East Education Holdings Ltd lost 2.8%.

** Index heavyweight Alibaba lost 1.3%, dragging the index down 35 points.

** Heavily-indebted developer China Evergrande Group 3333.HK plunged more than 8% after a strong rebound earlier this week that came on the back of asset sale plans.