SHANGHAI, July 18 (Reuters) - China and Hong Kong stocks fell on Tuesday after weak economic data disappointed investors, while a raft of sell-side analysts lowered their full-year growth forecast for China.

** China's blue-chip CSI300 Index dropped 0.3% by the lunch break, while the Shanghai Composite Index lost 0.4%. Hong Kong benchmark Hang Seng Index was down 2.2%.

** A streak of economic data posted on Monday confirmed that growth remained sluggish in the second quarter.

** Economists and analysts have since downgraded their expectations for China's full-year growth.

** Morgan Stanley cut China's 2023 economic growth forecast by 0.7 percentage points to 5% after the country reported a "weak" second-quarter GDP reading.

** None of the major banks are looking for a below-5% growth at this point, however likely on expectations of policy stimulus to prevent further deterioration, said Alvin Tan, head of Asia FX Strategy at RBC Capital Markets.

** In Hong Kong, after the market reopened from an unexpected closure on Monday due to Typhoon Talim, tech shares were down 2.4%, partially reflecting the weak economic data.

** Mainland properties traded in Hong Kong lost nearly 6%, on track for the worst single-day performance in seven months, after the world's most indebted property developer, China Evergrande Group, posted steep losses in its overdue financial results.

** The property sector continued to be the primary drag on the economy, said Yibei Dong at Gavekal Dragonomics.

** "All major indicators — including sales, project starts and completions — worsened in June, (when) measured as a share of seasonally adjusted 2019 levels," Dong said.

(Reporting by Shanghai Newsroom; Editing by Sohini Goswami)