Shares in the MTR Corporation (0066) closed 2.57 percent lower at HK$41.70 as they resumed trading, following the investigation of the Sha Tin-Central Link scandal after the suspension of trading on Tuesday.
The government also indicated that it was dissatisfied with the management of the related projects as the scandal led to the exit of several top management officials.
Morgan Stanley issued a research report yesterday that the issue would have uncertain effects on the financial performance, which may drive away investors. Morgan Stanley maintained an underweight rating with target price at HK$40.
Meanwhile, the Hang Seng Index jumped 110 points to 28,359.14 although it fell lower than Tuesday's level twice. Tencent (0700) climbed 2 percent to HK$364 while Link REIT (0823) jumped to a record HK$78.25 in early trading, and closed at HK$77.85.
In addition, shares of HKBN (1310) fell as much as 5.5 percent to HK$11.58 after the company announced it would buy fixed-line operator WTT Holding.
HKBN's direct wholly-owned subsidiary MLCL, TPG Wireman and Twin Holding entered into a merger agreement in which MLCL has conditionally agreed to purchase, and TPG Wireman and Twin Holding have conditionally agreed to sell, the entire share capital in WTT Holding for HK$5.49 billion.
HKBN will assume the existing indebtedness of WTT Group in the amount of US$670 million (HK$5.26 billion). This results in an overall enterprise value of WTT Group of about HK$10.50 billion.