Hong Kong blue chip stocks fell 0.8 percent on Tuesday following losses on Wall Street and on persistent concern about the impact of higher interest rates on the local property market.
"It was a healthy correction and players were taking the chance to take profits after the recent strength of the market," said Alfred Chan, chief dealer of Cheer Pearl Investment Ltd, adding the underlying tone of the market remain firm.
The benchmark Hang Seng index ended the session down 0.79 percent, or 119.25 points, at 14,980.75 points. Turnover was HK$8.36 billion ($1.1 billion) against HK$8.86 billion on Monday.
Interest rate-sensitive property stocks tumbled despite expectations that Hong Kong's strong economic growth may boost rental income in the long run.
The properties sub-index fell 1.95 percent to 17,852.34 after rising 3.3 percent last week, Shares of Cheung Kong Holdings Ltd dropped 1.2 percent to HK$82, Sun Hung Kai Properties Ltd lost 1.39 percent to HK$74.30, Henderson Land Development Co Ltd fell 1.84 percent to HK$34.60 and Great Eagle Holdings Ltd shed 3.61 percent to HK$20.
Shares of HSBC, which have risen 4 percent over the past month, fell 0.32 percent to HK$125.
HSBC stuck to the bank's tradition of promoting company insiders on Monday when it named Stephen Green, group chief executive, to succeed John Bond, its highly regarded veteran chairman who will retire next May.
The head of HSBC's UK bank, Michael Geoghegan, 52, will replace Green, 57, as chief executive, creating a new double act of executives at the helm of the world's third-largest bank by market value. See for details
Stocks of Hutchinson Telecommunications International, which have risen 23.3 percent over the past three months, fell 0.46 percent to HK$10.80 in midsession.
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