SHANGHAI, Sept 20 (Reuters) - China stocks slipped on Wednesday as concerns lingered about the world's second-largest economy despite last week's better-than-expected data, with foreign investor selling also weighing on market sentiment.
** The blue-chip CSI 300 Index and the Shanghai Composite Index both slipped 0.3% by the midday recess.
** Hong Kong's Hang Seng Index lost 0.8%, while the Hang Seng China Enterprises Index dropped 0.9%.
** Asian stocks struggled for headway while 10-year U.S. Treasury yields stood at 16-year highs as surging oil prices drive inflation and set the scene for the Federal Reserve to project interest rates staying higher for longer.
** In line with market expectations, China kept benchmark lending rates unchanged at a monthly fixing.
** The decision came as recent economic data showed China's economy was finding its footing after a sharp slowdown, with both factory output and retail sales in August beating market expectations.
** However, Cong Liang, the vice chairman of the National Development and Reform Commission, said China's economy still faced a lot of difficulties and challenges.
** China will intensify macro-control efforts and strive to achieve annual economic development goals, Cong said.
** Shares in tourism, semiconductor , and automobile firms lost between 1% and 1.6% to lead the decline.
** Foreign investors sold a net 2.2 billion yuan ($301.46 million) of Chinese stocks via the Stock Connect so far on Wednesday.
** Tech giants listed in Hong Kong slumped 1.9%, weighing on the Hang Seng benchmark.
** "With Asia, GEM (Global Emerging Markets) and global funds already underweight China, especially GEM funds, we believe much of the pessimism has been priced in," HSBC said in a note.
** "The good news is the market is now cheap. We also see positives from the widespread improvement in August macro data."
($1 = 7.2978 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)