SHANGHAI, Aug 8 (Reuters) - China stocks were roughly flat on Tuesday after the country's July exports and imports contracted more than expected. Hong Kong shares were down, led by property stocks.
** China's blue-chip CSI300 Index edged up 0.1% by the lunch break, while the Shanghai Composite Index was flat. Hong Kong benchmark Hang Seng was down 1.4%.
** China's exports fell 14.5% in July year-on-year, while imports contracted 12.4%, customs data showed on Tuesday, in the worst showing for outbound shipments from the world's second-largest economy since February 2020.
** Though the trade data fell short of market expectations, China stocks were not reacting much to the news.
** UBS analysts said in their China second-half equity outlook that current onshore market sentiment is "overly pessimistic", though they are not expecting a sharp increase in capital inflows in the short term, but a rather gradual economic recovery aided by policies that will ultimately lead stocks higher.
** Foreign capital outflow was seen via the northbound trading link. By midday, they sold a net 4.4 billion yuan ($610.22 million) of Chinese stocks.
** CSI300 Healthcare Index rebounded slightly after losing roughly 7% since the end of July after China's new anti-corruption clampdown started.
** Chinese pharma giant Hengrui also rebounded, up 2.8%, after losing 20% since July 28.
** Meanwhile, securities stocks were up 0.5% after reversing some gains in early morning trade.
** Mainland property developers traded in Hong Kong slumped 4.4%, with Longfor Group plunging 9.1% and Country Garden dropping 7.6%.
** Tech giants listed in Hong Kong lost 2.1%.
($1 = 7.2105 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Sohini Goswami)
