Summary The benchmark Hang Seng Index ended down 184.66 points at 24,702.78
HONG KONG (AFP) - Hong Kong stocks closed 0.74 percent lower Tuesday on profit-taking, with the market also tracking a heavy sell-off in Shanghai on concerns about China s economy and upcoming initial public offerings.
The benchmark Hang Seng Index ended down 184.66 points at 24,702.78 on turnover of HK$79.87 billion ($10.31 billion).
Shanghai retreated 2.20 percent.
US shares continued their six-year bull run Monday, with the Dow and S&P 500 again ending at record highs. The Nasdaq surged above 5,000 for the first time since 2000, when the dot-com bubble burst.
However, Asian investors largely brushed off the news and instead cashed in after enjoying their own rally.
China s decision at the weekend to cut interest rates for a second time in three months lifted Hong Kong and Shanghai Monday, but that was unable to mask long-running concerns about the world s number two economy.
The latest official reading on manufacturing pointed to ongoing weakness in orders, suggesting continued weakness down the line.
Focus will now be on the beginning Thursday of the annual meeting of China s rubber-stamp legislature, the National People s Congress, at which Premier Li Keqiang is expected to deliver an address on the state of the economy.
It is also expected to unveil its economic growth target for the year, after 2014 saw the worst performance in 24 years.
Among market gainers insurer AIA jumped 2.11 percent to HK$48.35, casino giant Galaxy Entertainment climbed 2.04 percent to HK$5.62 and HSBC added 0.29 percent to HK$69.75.
However, Cheung Kong lost 0.32 percent to HK$155.90, China Unicom fell 2.21 percent to HK$12.38 and Lenovo eased 1.82 percent to HK$11.88.
In China the benchmark Shanghai Composite Index dropped 73.24 points to 3,263.05 on turnover of 441.6 billion yuan ($70.4 billion).
The Shenzhen Composite Index, which tracks stocks on China s second exchange, fell 1.12 percent, or 18.66 points, to 1,644.99 on turnover of 392.3 billion yuan.
China s market regulator announced late Monday it had approved 24 initial public offerings, fuelling worries more funds will be diverted from existing equities.
Central China Securities analyst Zhang Gang told AFP the market decline was "mainly due to the new share offers".
"Whether we will see a fresh uptrend will depend on the performance of heavyweight financials, which are currently in consolidation due to factors including weak economic fundamentals," he said.
Financials were lower in Shanghai.
China Pacific Insurance Group tumbled 5.50 percent to 32.31 yuan, Haitong Securities dropped 4.93 percent to 20.82 yuan and ICBC lost 3.72 percent to 4.40 yuan.
Shares linked to environmental protection bucked the trend, extending gains from the previous session on speculative buying.
Zhejiang Feida Environmental Science & Technology soared by its 10 percent daily limit to 18.83 yuan in Shanghai while Beijing SPC Environmental Protection Tech advanced 7.29 percent to 37.36 yuan.
