Hong Kong stocks ended lower yesterday in line with losses on Wall Street.
Property and conglomerates saw the heaviest selling, as investors took profits on recent gains.
Even some red chips saw their share prices trimmed following heavy gains on Monday and last week.
The Hang Seng Index fell 45.19 points to end at 12,580.85.
ING Barings sales director James Osborn said: 'The market doesn't look like it is breaking down, but it has not made up its mind to break out on the upside.' Swire Pacific A shares continued to slip, losing 2.15 per cent to $57.
BZW analyst K.Y. Ng said: 'It is more sentiment than fundamentals.' He said many investors were switching out of the largely British-controlled conglomerate to focus on China-related stocks in the run-up to the handover.
Cathay Pacific Airways, of which Swire owns a significant stake, fell 1.25 per cent to $11.80 on news that rival Dragonair would be able to expand its routes in China following the handover.