China shares drop on weak output data; Hong Kong flat

* SSEC -1.1 pct, CSI300 -0.5 pct, HSI 0.0 pct

* Jan-Feb industrial production at 17-year low

* Trump says he is no rush for trade deal

* Securities firms fall as CSRC targets margin financing

SHANGHAI, March 14 (Reuters) - Chinese shares fell on Thursday, extending losses from the previous session, after data showed that growth in China’s industrial output plunged to a 17-year low in the first two months of 2019, reinforcing worries over a slowing economy.

** At the midday break, the Shanghai Composite index was down 1.09 percent at 2,994.06. China’s blue-chip CSI300 index was down 0.48 percent. ** Chinese H-shares listed in Hong Kong dipped 0.02 to 11,404.03, while the Hang Seng Index was down 0.03 percent at 28,799.75. ** The smaller Shenzhen index was down 2.39 percent and the start-up board ChiNext Composite index was weaker by 3.03 percent. ** China’s industrial output rose 5.3 percent in the first two months of the year, the National Bureau of Statistics (NBS) said, less than expected and the slowest pace since early 2002. However, investment picked up speed as the government fast-tracked more road and rail projects. ** Adding to worries over trade, U.S. President Donald Trump said on Wednesday he was in no rush to complete a trade pact with China, insisting that any deal include protection for intellectual property, a major sticking point between the two sides during months of negotiations. ** A sub-index tracking securities firms fell 2.51 percent after China’s securities regulator said it has tightened scrutiny over grey-market margin financing, barring brokerages from facilitating shadow lending and warning against risks of another credit-fuelled bubble. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.23 percent, while Japan’s Nikkei index rose 0.15 percent. ** The yuan was quoted at 6.711 per U.S. dollar, 0.06 percent weaker than the previous close of 6.707. ** The largest percentage gainers in the main Shanghai Composite index were Citychamp Dartong Co Ltd, which climbed as much as 10.11 percent, followed by Changchun Sinoenergy Corp , which gained up to 10.06 percent and Hunan Huasheng Co Ltd, up by 10.05 percent. ** The largest percentage losses in the Shanghai index were Shanghai Jielong Industry Group Corp Ltd, which slipped as much as 10.06 percent, followed by Shanghai Shibei Hi-Tech Co Ltd, which lost up to 10.02 percent and Luxin Venture Capital Group Co Ltd, down by 10.01 percent. ** So far this year, the Shanghai stock index is up 21.37 percent, while China’s H-share index is up 12.7 percent. Shanghai stocks have risen 2.92 percent this month. ** The top gainers among H-shares were Air China Ltd, up 4.31 percent, followed by CNOOC Ltd, gaining 3.92 percent and Shenzhou International Group Holdings Ltd, up by 2.82 percent. ** The three biggest H-shares percentage decliners were Dongfeng Motor Group Co Ltd, which has fallen 4.14 percent, Guangzhou Automobile Group Co Ltd, which has lost 3.4 percent and CSPC Pharmaceutical Group Ltd, down by 3.1 percent. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 1.9 percent, while the IT sector slipped 0.7 percent. The top gainer on the Hang Seng was CNOOC Ltd, which climbed 3.92 percent, while the biggest loser was Geely Automobile Holdings Ltd, which was down 3.16 percent.

Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips