Hong Kong stocks fell on Tuesday and China shares were rangebound amid a sluggish economic recovery and weak investor sentiment.


** Hong Kong's Hang Seng Index lost 0.6%, and the Hang Seng China Enterprises Index declined 0.7% by the midday recess.

** The blue-chip CSI 300 Index remained flat, and the Shanghai Composite Index edged up 0.1%.

** Other Asian stocks edged higher, while the dollar was at a three-month low as investors remained convinced that the U.S. Federal Reserve was done with its rate-hike cycle and looked ahead to a crucial inflation report later this week.

** "Recent China economic data are still relatively sluggish and do not resonate with the Fed's slowdown in interest rate hikes," said Li Yanzheng, fund manager at Fortune & Royal Asset. "So the market struggles, as the big-cap stocks remained weak while small stocks outperformed."

** Shares on the Beijing Stock Exchange, which focuses on China's innovative small companies, dropped 3.2% after surging 11.4% on Monday amid frenzied bets.

** The bourse vowed to strengthen regulation and maintain a normal trading order on Monday after shares on the exchange rallied more than 50% since a recent low in October.

** Data showed Chinese industrial firms' profits grew at a slower pace. Investors are still concerned about China's weakening property sector and related sectors.

** China's central bank said it would fend off systemic risks to the economy and use forceful and targeted monetary policy to better support domestic demand.

** In mainland markets, healthcare shares and automobiles rose 1.7% each.

** Hong Kong-listed tech giants slipped 0.3%, with food-delivery giant Meituan down 3.3% ahead of earning results later on the day.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)