RPT-Banks knock HK shares 3.8 pct lower, Lenovo hit

(Repeats to additional subscribers)

* China bank shares tank for second day in a row

* Lenovo slides after warning of loss in December quarter

* Cathay slides on hedging loss revelation

* Commodity stocks battered by lower oil (Updates to close)

By Parvathy Ullatil

HONG KONG, Jan 8 (Reuters) - Hong Kong shares closed 3.8 percent lower on Thursday as three big Chinese banks tanked, losing $25 billion of their combined market capitalisation in a two-day slide after two equity selldowns put nervous investors on the backfoot.

Shares in PC maker Lenovo Group (0992.HK) shed more than one-quarter of their value, marking their biggest daily drop in more than a decade after the world's No. 4 personal computer vendor warned of a loss for the quarter ended in December and announced an 11 percent staff cut to reduce costs. [ID:nHKG83062]

"Lousy quarterly earnings were widely expected, especially from its major markets overseas, but a faster-than-expected slowdown in the Chinese economy worries investors," said Conita Hung, head of equity research at Delta Asia Financial.