SHANGHAI/HONG KONG (Reuters) – (story refiles to make clear RS Investments manages $22.3 billion) Squeezed between cut-throat competition from online financing firms and rising funding costs, China’s midsize banks are falling out of investors’ favor as they increasingly lag behind the country’s top five lenders. While margins generated from lending have remained broadly stable at the larger banks, they have shrunk considerably for the second-tier lenders like China Everbright Bank and China Merchants Bank over the past six months, a Reuters data analysis shows.