Hong Kong, China shares drop as financials, energy lead losses

* Worries of global economic slowdown, China rate hike talk weigh

* Hang Seng index down 1.6 pct, financials, energy down

* Shanghai down 1.4 pct to four-month low

* Weak overseas markets, rate hike talk hits risk appetite

* Glencore drops 4 pct after EIB raises corp governance issues (Updates to close)

By Vikram Subhedar and Clement Tan

HONG KONG, June 2(Reuters) - Shares in Hong Kong and China fell on Thursday, with Shanghai's main index slumping to a four-month low, on signs that the global economic recovery is losing steam and on fears of more policy tightening in China over the coming long weekend.

The Hang Seng ended 1.6 percent lower at 23,253.8 points, giving up almost all of its gains for the week, as investors moved out of financials and energy plays that carry the biggest weightings in the benchmark index.

Turnover fell 15 percent compared with the previous session, suggesting there was no rush for the exits despite global market weakness.

China's Shanghai Composite fell 1.4 percent to 2,705.2 points, its lowest level since January, but found support near the 2,700 level from which it had bounced earlier this week.

Investors have been rattled this week by data showing a worldwide manufacturing slowdown and fresh weakness in the U.S. labour and housing markets, which could spur further selling of riskier assets such as equities and commodities.

Traders are also on guard for further policy tightening in China, where officials remain intent on curbing stubbornly high inflation despite signs of a modest slowdown in economic growth.

The People's Bank of China has picked holidays or weekends to surprise the market with tightening steps, such as hikes in interest rate or banks' reserve requirement ratio (RRR), since it launched its latest monetary tightening cycle last October. Hong Kong and mainland China markets are closed on Monday for holidays.

"The growth and inflation mix is something of a worry, but only in the short term," said Elke Schoell-Jost, chief investment officer at BEA Union Asset Management in Hong Kong.

Oil producers, which have enjoyed a bounce over the past week, slid on worries that demand would wane in a slowing global economy. CNOOC Ltd , which had seen a strong run-up over the past week, fell 2.2 percent, while PetroChina Co Ltd shed 2.1 percent.

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