China stocks were lower on Wednesday morning as investors booked profits amid weakening sentiment, a day after data showed slower loan growth in July.

The CSI300 index fell 0.3 per cent to 3,695.26 at the end of the morning session, while the Shanghai Composite Index lost 0.2 per cent to 3,245.31. China CSI300 stock index futures for August rose 0.1 per cent to 3,690, 5.26 points below the current value of the underlying index.

“From July data we can see a definite pullback in the economy, which is making investors reconsider their growth expectations for the third quarter,” said Cao Xuefeng, head of research at Huaxi Securities in Chengdu. “This is particularly affecting cyclical sectors.”

China's new loans in July fell to their lowest in 8 months, reinforcing views economic activity will slow in the second half. Materials firms are taking the brunt of selling. The CSI300 materials sub-index has fallen 1 per cent.

Xiamen Tungsten Co Ltd fell 2.9 per cent in morning trade, while China Northern Rare Earth Group High-Tech Co Ltd is 5.2 per cent lower and Jinduicheng Molybdenum Co Ltd is down 2.5 per cent.

Anxin Trust Co Ltd had the largest drop among CSI300 components, falling 6.8 per cent after announcing a 15.7 per cent rise in H1 net profit. Anxin Trust shares had previously gained 36 percent since the beginning of June.

The Hang Seng index, which succumbed to selling pressure late Tuesday, added 0.7 per cent, to 27,354.24.

China Mengniu Dairy Co Ltd was up 5.6 per cent and Industrial and Commercial Bank of China Ltd was 1.8 per cent higher.

The Hong Kong China Enterprises Index gained 0.7 per cent to 10,814.91. The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 127.51.

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.