Hong Kong's benchmark share index fell 0.6 percent on Wednesday as strong US economic data reignited fears about further interest rate increases, but shares of Chinese retailer Parkson Retail Group Ltd made a strong debut.
Shares of Parkson, a unit of Malaysian conglomerate Lion Diversified Holdings, jumped 24 percent from their IPO price to HK$12.15 as investors rushed to tap into the rising spending power of Chinese consumers.
The blue chip Hang Seng Index ended 91.62 points lower at 14,937.14 after falling 0.47 percent on Tuesday.
"It is a struggle between stronger economic growth and interest rate hike worries," said Louis Wong, research director at Phillip Securities.
"People are happy to see strong economic growth (in the US) but on another hand they are worrying that it may increase the chance of further interest rate hike."
"Uncertainty outweigh certainty at the moment," Wong added.
Turnover was HK$19.2 billion ($2.5 billion) against Tuesday's HK$16.4 billion.
Worries over higher interest rates pressured shares of property developers, though traders said the downside risk was limited as local economic growth remained strong. The properties sub-index lost 1.33 percent to 17,710.21. heavyweight developers Sun Hung Kai Properties and Henderson Land lost 1.14 percent to HK$73.90 and 1.58 percent to HK$34.30, respectively.
Stocks of Cheung Kong (Holdings) Ltd fell 2.12 percent to HK$80.70, while Hutchison Whampoa lost 1.93 percent to HK$73.60.
Tycoon Li Ka-Shing's Prosperity REIT aims to raise up to US $246 million in a Hong Kong IPO, sources said on Tuesday, with its office and industrial buildings offering a higher yield than the Link REIT launched last week.
The Prosperity Real Estate Investment Trust (REIT), with seven buildings being sold by Li's Cheung Kong (Holdings) and Hutchison Whampoa, will sell 888,183,178 units at between HK$2.00 and HK$2.16 each. Final pricing is planned for December 8.
Shares of city gas distributor China Gas Holdings Ltd fell 0.76 percent to end at HK$1.31 after it said it had agreed to sell a 7.45 percent stake to Oman Oil Company for HK$248 million (US $31.8 million).