SHANGHAI: China's CSI300 index fell more than 1 percent in early trading on Monday, led by brokerages, after the Hong Kong stock exchange chief said a closely-watched scheme linking Hong Kong and Shanghai had not yet won regulatory approval.

Western Securities tumbled 5.3 percent, followed by Pacific Securities Co Ltd which fell 4.6 percent. China Merchants Securities Co Ltd and Haitong Securities both declined by about 2 percent each.

Many investors had expected the mainland Chinese brokerages to be the primary beneficiaries of the scheme's first phase.

Copyright Reuters, 2014