SHANGHAI, Nov 5 (Reuters) - Mainland China and Hong Kong stocks fell in early trading on Wednesday, tracking overnight losses on Wall Street and their regional peers, as big banks warned that equity markets could be headed for a drawdown.
CEOs of Wall Street heavyweights Morgan Stanley MS.N and Goldman Sachs GS.N on Tuesday cautioned that equity markets could be heading toward a drawdown, underscoring growing concerns over sky-high valuations.
As of 0149 GMT, the Shanghai Composite index .SSEC was down 0.48%, while the blue-chip CSI300 index .CSI300 lost 0.73%.
In Hong Kong, the benchmark Hang Seng Index .HSI dropped 1.03%, and the city's tech index .HSTECH fell 1.67%.
"The lack of a single clear catalyst suggests that investor caution is being driven by a combination of macroeconomic uncertainties, including concerns about growth prospects, ongoing government shutdown negotiations in the U.S., and heightened scrutiny of capital expenditure in key industries," said Shier Lee Lim, lead forex and macro strategist for APAC at Convera.
Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 1.87% while Japan's Nikkei index .N225 was down 3.98%.
(Reporting by Shanghai Newsroom and Rae Wee in Singapore; Editing by Rashmi Aich)
