* EM shares index down ~4% this week * Hong Kong stocks set for worst week since March 2020 * S.African rand down 0.9%, Russian rouble at one-month low * China central bank keeps lending rates unchanged Aug 20 (Reuters) - Emerging market assets suffered further selling on Friday, with the equity index down 1%, touching a new low for the year and putting it on course for its worst week in six months. Worries about the impact of Chinese regulations both locally and globally, as well as data showing a slowdown in growth especially from the world’s two biggest economies, have hammered stocks this week. Rising cases of the coronavirus have prompted market experts to revisit year-end growth forecasts. In the latest regulatory shake-up, Chinese state media said the National People’s Congress passed a law on Friday to protect online user data privacy. Chinese blue-chips lost 1.9%. Hong Kong, where many Chinese tech giants are listed, lost 2% to hit early November lows, and is on track for its worst week since the pandemic-induced crash of March 2020. Russia’s MOEX is already about 2.5% away from record highs touched just two days ago, while South Africa’s main index has plunged almost 5% so far this week - its worst weekly loss since October. Also battering markets was the U.S. Federal Reserve signalling that it may start tapering stimulus this year. Its September meeting will be scrutinised for more definitive clues. “Tapering is finally at our doorstep, but we do not think that it will be overly disruptive for (equity) markets,” strategists at Citi said in a note on stocks in emerging EMEA markets. “China remains our only duration overweight, but we hedge (currencies) risk given weak economic data.” With the U.S. dollar at a 9-1/2 month high against major peers, the EM currencies index hit four-month lows - on course for its biggest weekly sell-off in two months. South Africa’s rand, the EM bellwether currency, languished at five-month lows, down 0.9% on the day. A Reuters poll showed disruptions from new coronavirus variants, and softer commodity prices should see economic growth in South Africa slowing next year. Turkey’s lira fell 0.1%, while Russia’s rouble hit a one-month low against the dollar on the Moscow exchange. China’s yuan touched three-week lows. As expected, the central bank left its benchmark lending rate unchanged, but that did little to dampen expectations for more stimulus. As regulators raise pressure, China Evergrande vowed to resolve its debt issues. Financial markets are worried that any crisis at Evergrande could ripple through China’s banking system as the company struggles to find the cash it needs to pay its many lenders and suppliers. For GRAPHIC on emerging market FX performance in 2021, see tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2021, see tmsnrt.rs/2OusNdX For TOP NEWS across emerging markets For CENTRAL EUROPE market report, see For TURKISH market report, see For RUSSIAN market report, see Reporting by Susan Mathew in Bengaluru; Our Standards: The Thomson Reuters Trust Principles.