* Hang Seng Index little changed, property weighs
* Shanghai stocks lower, energy, insurers slip
* Strategists optimistic for China shares to rebound in 2011
* Tightening concerns, year-end keep investors on sidelines (Updates to midday)
By Vikram S.Subhedar and Farah Master
HONG KONG/SHANGHAI, Dec 17 (Reuters) - Shanghai shares traded slightly lower in thin volume on Friday morning as investors stayed clear of making big bets as a choppy 2010 comes to a close.
The Shanghai Composite Index, down 0.34 percent by the midday trading break, is on track to post a gain of about 2 percent on the week.
The weaker mainland market dragged Hong Kong's Hang Seng Index 0.27 percent lower to 22,607.25. The index slipped below a key support level on Thursday putting the benchmark at risk of seeing its slim gains for the year wiped out.
The Shanghai index is Asia's worst performing major market this year, down nearly 12 percent, but market players are largely optimistic that the market might have found its bottom and is poised for a rebound in 2011 on the back of strong corporate earnings.
In the near-term however uncertainty over the severity of future monetary policy continued to keep risk-averse retail investors on the sidelines.
China posted robust economic data for November but inflation jumped to a 28-month high, clearing the way for the authorities to unleash a raft of new tightening measures. In anticipation of such steps, cautious investors fled large cap issues they consider more vulnerable in a policy tightening environment.
"Confidence is lacking as we get closer to the end of the year and investors are mostly counting on inventories for their stock earnings this year and are unlikely to take new positions," said Huaxi Securities analyst Cao Xuefeng in Chengdu.
Chief banking regulator Liu Mingkang said China had the power to keep inflation at a relatively reasonable level next year but it would still pose a challenge to economic policies and management of various sectors.
Financials were the biggest weight on the index on Friday, extending losses from Thursday, with Industrial and Commercial Bank of China Ltd 0.2 percent lower.
In Hong Kong, property stocks were under profit-taking pressure as investors continued to trim portfolios to lock in gains after a strong second-half rally in the sector.
Sun Hung Kai Properties Ltd was down 1 percent. Rival Henderson Land Development Co Ltd was down 1.6 percent.
Consumer and travel issues outperformed with analysts saying these would be the big gainers as the holiday season approached.
In Shanghai, Hot spring resorts operator China United Travel Co Ltd rose 4.6 percent and rice pudding retailer Shanghai Tongda Venture Capital Co Ltd gained 4.5 percent.
In Hong Kong, jewellery retailer Belle International Holdings Ltd rose 1.9 percent, the top gainer on the Hang Seng Index.
Gaming stocks were modestly higher, tracking gains in U.S.-listed counterparts, on reports that land concession requests for certain sites in Macau may be approved. Wynn Macau Ltd rose 3.7 percent. ($1=6.66 Yuan) (Editing by Chris Lewis)