A volley of negative news sent Hong Kong shares skidding lower yesterday.
The sacking of brokerage executives for allegedly overheating mainland stock markets dampened red chips.
The debut of Beijing Enterprises sparked some switching out of mainland-related counters, brokers said.
Property shares remained under pressure on fears the Government was looking to cool speculation in the property market.
Miles Remington, of SocGen-Crosby, said: 'It is a healthy correction, but I would prefer to see it go further.' The Hang Seng Index closed at 14,416.57, down 139.91 points, or 0.96 per cent. Beijing Enterprises commanded $2.5 billion of yesterday's $16.38 billion turnover.
Sun Hung Kai Properties, Cheung Kong and Henderson Land hurt the index most.
A statement by Cheung Kong chairman Li Ka-shing that a cap on mortgage lending would hurt the property market and his call for the Special Administrative Region government to release more land made investors nervous, brokers said.