* China Strategic says in talks with AIG, Primus on appeal
* Shares tumble to 11-month low when trading resumes (Recasts, adds background)
HONG KONG, Sept 6 (Reuters) - Shares in China Strategic Holdings Ltd fell by almost half on Monday when they resumed trading after a halt following the rejection of the company's $2.2 billion bid for AIG's Taiwan unit.
The shares fell by as much as 46 percent when trading resumed on Monday afternoon and were last trading down 37 percent at HK$0.33 at 0713 GMT.
The company said in a statement to the stock exchange that it still had not received formal notice from Taiwan officials on the rejection of its proposal to buy AIG's Nan Shan life insurance unit.
It said it was still in discussions with co-buyer Primus Financial and AIG to determine its next step. The buying group has 30 days to appeal Taiwan's decision.
Taiwan's regulators rejected the bid last week, saying that China Strategic and Primus did not meet criteria on experience in the insurance business and ability to raise funds.
American International Group (AIG) has not been able to seal the planned sale, first announced last October, marking the second failure in Asia of an attempt to use asset sales to repay billions of U.S. taxpayer dollars used to bail out the company.
In May, AIG lost a $35.5 billion sale of Asian life insurance unit American International Assurance (AIA) to Prudential Plc.
Chances for an appeal over Nan Shan would not be good, some lawyers have said, prompting Fubon Financial, parent of Taiwan's No.2 life insurer, to put its name forward as a possible buyer of the Nan Shan unit. (Reporting by Michael Flaherty in Hong Kong and Faith Hung in Taipei; Editing by Ken Wills)