SHANGHAI, Dec 19 (Reuters) - Hong Kong shares fell on Thursday after the U.S. Federal Reserve cautioned it would ease the pace of rate cuts next year, while a weak property sentiment dragged China stocks lower.

** China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC both dropped 0.4% by the lunch break, while the Hong Kong benchmark Hang Seng .HSI was down 1.0%.

** The Hong Kong Monetary Authority (HKMA) cut its base interest rate on Thursday, tracking a move by the Fed whose overnight remarks suggested fewer cuts next year.

** "As the rate cut becomes very uncertain for 2025, investors have a low appetite for Hong Kong equities, where most are rate sensitive," said Kelly Chung, chief investment officer, multi assets at Value Partners.

** Hong Kong's monetary policy moves in lock-step with the United States.

** "The weak RMB and record-low China bond yields have also pressured sentiment," Chung said.

** China's yuan CNY=CFXS fell to 7.3 per dollar on Thursday, the weakest level since November 2023.

** Real estate shares .CSI000952 led the decline in China, down 2%, with market focus on Vanke and Sunac.

** Vanke's onshore 000002.SZ and offshore stocks 2202.HK were down 3.9% and 4.9%, respectively, after media reported China asked insurers to report their debt holdings of the company.

** Shares of Chinese property developer Sunac China Holdings 1918.HK dropped more than 4% in early trade, following reports that the company has initiated arbitration proceedings against Wanda Group.

** Shares of Chinese electric vehicle battery maker CATL 300750.SZ were little changed after media reported that the firm is considering a Hong Kong listing that could raise at least $5 billion.

** Tech shares traded in Hong Kong .HSTECH were down 1.3%.

(Reporting by Shanghai Newsroom; Editing by Eileen Soreng)

((li.gu@tr.com))