Internet giant Tencent Holdings slipped 1.5 per cent to HK$280.40 and Alibaba Group Holding weakened 0.4 per cent to HK$75.20.
Limiting the losses, online games operator NetEase surged 6.3 per cent to HK$179.70 after the industry regulator approved 111 new titles this month. Baidu gained 1.8 per cent to HK$110.50 before its earnings announcement later on Wednesday that may show net income increased 19 per cent from a year earlier in the fourth quarter.
The strength of the recent rally in Hong Kong stocks will be put to the test, as traders shift their focus to economic fundamentals and corporate earnings. Bellwether companies including NetEase and Hong Kong Exchanges and Clearing are due to report their results later this week and China will release a purchasing managers’ index of its manufacturing industry on Friday.
“The rebound [has been] mainly driven by low valuations, policy support and improving liquidity,” said Wang Yi, an analyst at Great Wall Securities. “Fundamentals will take hold after the initial improvement in sentiment. Before an improvement in fundamentals is confirmed, the market may not have a clear trading theme.”
Other major Asian markets were mixed on Wednesday. Japan’s Nikkei 225 slipped 0.1 per cent and Australia’s S&P/ASX 200 was little changed, while South Korea’s Kospi rose 0.6 per cent.