Hong Kong stocks ended 0.37 percent lower Tuesday as profit-takers moved in after the index hit a six-year high in the previous session. The Hang Seng Index eased 92.41 points to end at 25,074.50 on turnover of HK$64.47 billion ($8.32 billion). Investors took their cash off the table after the index touched its highest level since 2008 thanks to a generally upbeat outlook.
However, there are lingering concerns that China's economy is still struggling despite a recent uptick, while hopes for fresh easing measures to boost growth have faded. The sell-off came despite a positive lead from Wall Street where traders cheered weekend comments from Federal Reserve head Janet Yellen suggesting the bank's accommodative policy would remain in place for some time.
Cathay Pacific Airways eased 0.41 percent to HK$14.72, HSBC dipped 0.36 percent to HK$83.40 and Sino Land was off 0.43 percent at HK$13.94. PetroChina jumped 2.19 percent to HK$11.22, China Mobile slipped 0.9 percent to HK$93.7 and Tencent shed 0.39 percent to HK$129.3. Chinese shares closed 0.99 percent lower as investors dumped technology and media firms to free up cash for new offers, dealers said.
The Shanghai Composite Index dropped 22.16 points to 2,207.11 on turnover of 134.1 billion yuan ($21.8 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 1.69 percent, or 20.61 points, to 1,202.46 on turnover of 160.4 billion yuan. Eleven companies will start offering shares for subscription this week, ahead of planned listings on the Shanghai and Shenzhen exchanges, state media reported.
"The new share issues will likely lead to a liquidity strain in the market and selling pressure might continue," BOC International analyst Shen Jun told AFP. "The decline is normal, given that there haven't been any fresh catalysts," he added. On the Shanghai market, media and entertainment firms led the declines. Gehua CATV Network slumped 5.38 percent to 11.44 yuan and Xinhua Media dropped 3.40 percent to 11.93 yuan. Technology firms also lagged. Inspur Software lost 4.57 percent to 25.68 yuan in Shanghai.
On the Shenzhen market, antenna maker Huizhou High Speed Wireless Technology tumbled 6.84 percent to 18.52 yuan while Jiangsu Hoperun Software sank 5.62 percent to 18.63 yuan. Companies which went public earlier this year were mixed. Kuaijishan Shaoxing Rice Wine surged by its 10 percent daily limit to 7.02 yuan in Shanghai while Guozhen Environment Protection Technology fell 4.30 percent to 30.05 yuan in Shenzhen.