SHANGHAI, July 17 (Reuters) - China stocks closed down on Monday, after data showed the country's economy grew at a frail pace in the second quarter as demand weakened at home and abroad, raising pressure on policymakers to deliver more stimulus to shore up activity.
** China's blue-chip CSI 300 Index ended 0.8% lower, while the Shanghai Composite Index declined 0.9%.
** The Hong Kong market was closed for the day due to approaching Typhoon Talim.
** On a year-on-year basis, China's GDP expanded 6.3% in the second quarter, accelerating from 4.5% in the first three months of the year, but the rate was below the forecast for growth of 7.3%.
** Data also showed China's property sales between June and May showed the largest monthly drop this year, based on sales by floor area, and investment in property also slumped.
** "To counteract persistent growth headwinds, we expect more (targeted) easing measures in coming months, with a focus on fiscal, housing and consumption, although the magnitude of stimulus should be smaller than in previous easing cycles," Goldman Sachs said in a note.
** Most sectors fell. Energy companies tumbled 2.4%, while shares in banks and media lost 1.5% and 1.9%, respectively.
** Separately, China's central bank rolled over maturing medium-term policy loans and kept the interest rate unchanged as expected on Monday, however markets expect authorities will need to unleash more stimulus to support slowing economic growth.
** All eyes are on an expected Politburo meeting later this month, when top leaders could chart the policy course for the rest of the year.
(Reporting by Shanghai Newsroom; Editing by Nivedita Bhattacharjee and Rashmi Aich)
