Hong Kong stocks snapped a six-day winning streak to end lower on Tuesday, amid renewed fears of a Sino-US trade fear and worries about China economy.
The Hang Seng index ended 1.2 percent down at 31,152 points, while the China Enterprises index closed down 0.8 percent at 12,440 points.
As of the previous trading session, the Hang Seng index was up 5.42 percent this year, while China's H-share index was up 7.1 percent. As of the previous close, the Hang Seng climbed 2.38 percent this month.
The market was not really helped by China's inclusion into MSCI's global indexes, as some fear the entry of mainland A-shares could reduce the attraction of Hong Kong stocks.
While Guangzhou Baiyunshan Pharmaceutical Holdings (0874) received benefits. Its shares soared 11.96 percent, thanks to mainland-listed shares which got a ticket into MSCI's global equity indexes.
The top gainer on the Hang Seng index was Country Garden Holdings Company (2007), which gained 1.84 percent, while the biggest loser was AAC Technologies (2018), which closed 4.84 percent down. The best performer among H-shares were CSPC Pharmaceutical Group (1093), up 4.32 percent, followed by Huaneng Power International (0902), gaining 3.22 percent and CGN Power (1816) up by 1.84 percent.
The Chinese yuan was quoted at 6.3543 per US dollar, 0.27 percent weaker than previous close of 6.3369.
The three biggest H-shares percentage decliners were Tencent Holdings (0700), which was down 3.40 percent, New China Life Insurance (1336) which fell 3.1 percent and PICC Property and Casualty (2328) down by 2.4 percent.
Meanwhile, heavyweight AIA (1299) declined 1.68 percent, HSBC (0005) slid 0.57 percent, CK Asset Holdings (1113) down 0.4 percent, Hong Kong Exchanges and Clearing (0388) dropped 1.66 percent, and Ping An Insurance (Group) Company of China (2318) lost 0.38 percent.
About 1.62 billion Hang Seng index shares were traded, roughly 95.2 percent of the market's 30-day moving average of 1.70 billion shares a day.