* IPOs dazzle in both markets in hefty trade
* HK shares fall for 2nd week to finish at two-week low
* China shares drop off 13-mnth high; gain 0.8 pct on week (Updates to close)
By Parvathy Ullatil and Claire Zhang
HONG KONG, July 10 (Reuters) - Shares in Hong Kong and China dropped on Friday as worries about the global economy kept a check on buying, but investors piled into new listings on both bourses, boding well for the languid primary market.
China's first batch of initial public offerings (IPOs) in 10 months listed in Shenzhen on Friday, with the new listings doubling intraday in hectic trade, while Hong Kong's new listing Amber Energy soared on massive interest with the retail portion of its issue oversubscribed 1,247 times.
"With uncertainty about the U.S. economy and China's monetary policy dragging down the broad market, IPOs have become the way to make some quick money," said Steven Leung, director with UOB Kay Hian.
China saw a net fund outflow of $424 million in the week to July 8, while Hong Kong saw a pick-up in inflows, up 1.8 percent over last week, in line with easing concerns over interest rates, and the launch of a number of initial public offerings.
HONG KONG SHARES FALL FOR 2ND WEEK
The benchmark Hang Seng Index was down 0.5 percent or 82.17 points at 17,708.42, its lowest closing level in more than two weeks, although Esprit gained 5.5 percent, trimming losses.
The gauge fell 2.2 percent in its second straight weekly decline, but is still up 56 percent from its March lows with its constituents valued at 16 times their estimated earnings per share in 2009.
Investor confidence in an early global economic recovery has been tested in recent weeks amid disappointing data and talk of the need for a second stimulus package for the U.S.
China's exports fell 21.4 percent in June from a year earlier, while imports fell 13.2 percent, Xinhua news agency said on Friday, quoting the General Administration of Customs.
Analysts see the main index range-bound between 17,000 and 19,000 points in the short term as corporate earnings begin to trickle in.
The China Enterprises Index, which represents top locally listed mainland Chinese stocks, dropped 0.6 percent or 66.77 points to 10,574.42.
New listing Amber Energy, a gas-fired power plant operator, surged 63.2 percent to HK$2.71 on its debut, outstripping its issue price of HK$1.66. The stock opened at HK$2.56 and hit a high of HK$2.98 earlier in the session, up 79.5 percent with over 239 million shares changing hands.
Chinese gas distributor Zhengzhou Gas Company soared 15.8 percent to HK$12.02 after it said its state-owned parent was looking to sell an 80 percent stake to non-listed China Resources Gas Holdings (CRGH) through the formation of a joint venture.
IPOs JUMP ON "LOTTERY" APPEAL
Chinese stocks slipped 0.3 percent on Friday, retreating from a 13-month intraday high, but posting a 0.8 percent weekly gain.
The Shanghai Composite Index ended down 9.103 points at 3,113.932, after touching an intraday high of 3,140.044.
Gaining Shanghai A shares outnumbered losers by 511 to 403, while turnover for Shanghai A shares slipped to 177.8 billion yuan ($26.0 billion) from Thursday's 184.0 billion yuan.
"Overall sentiment is cautious, despite two companies enjoying strong debuts, but if there are no major IPOs announced over the weekend, the index is likely to hit a new high for the year," said Huatai Securities analyst Li Wenhui, referring to a potential flood of new offerings adding to supply.
Guilin Sanjin Pharmaceutical soared 82 percent on its debut to 36.01 yuan, while Zhejiang Wanma Cable raced up 125 percent to 25.93 yuan. Both stocks were suspended for half an hour in early trade after jumping 20 percent intraday, in line with exchange rules.
Analysts had forecast debut prices would range between 17 and 32 yuan for Guilin Sanjin, and Zhejiang Wanma from 8 to 18 yuan.
Although the Shenzhen Stock Exchange had sent several notes informing investors to be wary of risks, the new share listings still drew speculative trades, which led the exchange to employ circuit breaker rules to halt trade.
"This is a kind of tradition to favour new shares," said Xu, an investor in Shanghai who won a "lottery" of 500 shares for Sanjin. "New shares are like a lottery, the safest and fastest way to get money, but only on their first day."
Large caps eased, with Industrial and Commercial Bank of China, the country's top lender, down 0.6 percent at 5.24 yuan. PetroChina, the most heavily weighted stock in the index, slipped 0.68 percent to 14.56 yuan. (Editing by Chris Lewis)