The Hang Seng Index yesterday reversed its four-day rally to close 1.81 per cent lower following a slide on Wall Street and in the absence of fresh leads. The index fell 236.8 points to 12,797.38 on a turnover of $5.91 billion, compared with Monday's $8.8 billion. The consolidation followed Monday's 1.14 per cent drop in the Dow Jones Industrial Average. There was also caution following the launch of the initial public offering for the Tracker Fund on Monday and profit-taking before key United States economic data is released later this week. Third-quarter US gross domestic product estimates and employment cost index data will be reported tomorrow. Both could point to an interest rate rise next month. 'It did not start on firm ground with the US not particularly strong,' Sun Hung Kai Securities research head Gilbert Chu Kwok-tsu said of the Hong Kong market. DBS Securities international sales vice-president Geoff Galbraith said: 'It's good old-fashioned profit-taking.' Others partly attributed the downturn to the $10 billion Tracker Fund, which is made up of the 33 blue chips. Retail investors will get a minimum 5 per cent discount on the stocks by investing in the fund and institutional investors an indicative discount range of 5 to 8 per cent. Mansion House Securities director Philip Poon Tai-yip said: 'I think the Tracker Fund is partly the reason. 'Now that they [the Government] have allowed institutional investors to come in and get a discount, these investors will hold back [from the marketplace] as they can buy the fund at a discount.' Some said it was too early to say if the fund influenced the market yesterday. South China Brokerage vice-chairman Howard Gorges said: 'I think the market is neutral on the Tracker Fund. It is hard to know. We've still got two weeks to run [until the offer closes] but I would expect it is no longer an influence on the market.' Among the losers were Hang Seng Bank, which skidded 2.82 per cent to $82.50 after going ex-dividend, and parent company HSBC, down 1.4 per cent to $87.50. Mainland-related shares also helped drag the index lower, with Citic Pacific off 4 per cent to $20.40 after the stock went ex-dividend. Beijing Enterprises shed 3.58 per cent to $12.10 and Shanghai Industrial finished 4.56 per cent lower at $14.65. US Treasury Secretary Lawrence Summers reportedly said yesterday that an agreement with Beijing on entry into the World Trade Organisation could come this year, but it would not see US Congress approval until next year. The red-chip index dived 3.14 per cent to 967.78 points and the H-share index fell 2.15 per cent to 489.79 points. In the second-tier sector, brokers said Goldtron placed 170 million shares at 45 cents each to raise $76.5 million to fund an Internet asset. The share's placing price was at a 19.64 per cent discount to its 56-cent closing price on Monday.