Hong Kong shares close down 0.1 pct, China names weak

HONG KONG Feb 7 (Reuters) - Hong Kong shares inched down on Tuesday in the lowest turnover in seven sessions, dragged down by weakness in mainland Chinese markets on dashed expectations of a near-term cut in bank reserve requirements.

The Hang Seng Index finished down 0.05 percent at 20,699.19. The China Enterprises Index of top mainland listings in Hong Kong ended down 0.56 percent at 11,499.77.

The Shanghai Composite Index closed down 1.68 percent at 2,291.9, breaking below a key chart support at 2,300 with its worst daily loss since Dec. 15 after hopes of a near-term cut in bank reserve requirements were doused.

HIGHLIGHTS:

* The Hang Seng Index had opened higher on Tuesday, but retreated from intraday gains with losses limited at around 20,564, a level that has supported the benchmark for the last three sessions. It is seen capped on the upside by its 250-day moving average, currently at 21,043.2 as investors watch the outcome of Greek debt restructuring talks, which if positive could spur gains and break above 21,017, the bottom of a 708-point gap that opened between Aug. 4 and 5.

* Chinese Internet giant Tencent Holdings Ltd was among the top drags on the Hang Seng Index, down 1.2 percent in almost twice its 30-day average volume after sector peer, Sohu.com Inc forecast a weak first quarter as it braces for steeper competition. (Reporting by Clement Tan; Editing by Chris Lewis)