SHANGHAI, Oct 20 (Reuters) -
Chinese stocks fell for a third session on Friday, tracking weaker global peers amid worries stemming from intensifying conflict in the Middle East and surging U.S. bond yields.
** The blue-chip CSI 300 Index slipped 0.2%, and the Shanghai Composite Index lost 0.3% by the midday recess, with both hitting fresh lows for the year.
** Hong Kong's Hang Seng Index dropped 0.4% and the Hang Seng China Enterprises Index declined 0.3%.
** Asian shares plumbed a fresh 11-month trough as fears of a regional conflict in the Middle East intensified and a relentless rise in long-term U.S. yields pressured valuations, while supply concerns lifted oil prices further.
** The yield on the 10-year U.S. Treasury note, a safe-haven in times of economic uncertainty that also sets the tone for borrowing costs, hit 5.0% on Thursday for the first since July 20, 2007.
** It overshadowed China's faster-than-expected growth in the third quarter, although investors are still worried about the deepening downturn in the property sector.
** Foreign investors sold a net 23 billion yuan ($3.14 billion) of Chinese shares via the Stock Connect so far this week, set to log the biggest weekly selling in two months.
** "Current weakness in the market is mainly due to liquidity - the selling of foreign investors hit market sentiment and offset the effect of other good news," said analysts at Bohai Securities.
** Shares in banks and computers lost more than 2% each, while property developers and new energy firms added 1.3% and 1.7%.
** Separately, China kept its benchmark lending rates unchanged at the monthly fixing, matching market expectations, as a set of economic data suggested the economy is stabilising and a weaker yuan constrained further monetary easing.
** In Hong Kong, tech giants slipped 0.3%, while mainland developers climbed 1.6%. ($1 = 7.3181 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Varun H K)
