Hong Kong declared its independence from Wall Street yesterday as technology shares bounced despite a plunge on the Nasdaq Stock Market, while sellers focused on banks and properties. The Hang Seng Index fell 64.9 points, or 0.43 per cent, to 14,996.24. China Mobile and Pacific Century CyberWorks helped soak up some of the losses from HSBC, whose 2.7 per cent decline to HK$108 knocked 115 points off the index. The gains in the new economy counters followed the worst fall for the Nasdaq Composite Index in five months as nervous investors dumped Nortel Networks Corp. The largely old economy Dow Jones Industrial Average saw modest losses. Pacific Challenge Securities research director Alan Hutcheson said the technology selling wave had simply not reached Hong Kong yet. 'Nasdaq is turning on its tail every two minutes. It's such a crazy market over there, your global fund manager doesn't have a lot of time to look at his little 2 per cent in Hong Kong, he just forgets about it for a while,' he said. Others said bargain hunters were seeking deals after the telecommunications sell-off. Tanrich Asset Management director Kennis Leung said of CyberWorks: 'It's relatively cheap. I believe [CyberWorks] can stand at the current level because of strong support from the management.' CyberWorks gained 2.54 per cent to $6.05. Analysts were less kind to old economy sectors. Morgan Stanley Dean Witter yesterday downgraded HSBC to neutral, while Salomon Smith Barney issued a siren call on property developers. Salomon property research head Robert Fong said property prices could fall 10 per cent in the short term following a succession of weak project launches and amid broader concerns such as high oil prices and volatile global stock markets. He said Sun Hung Kai Properties and Henderson Land traded near estimated net asset values simply because they offered diversification from telecommunications and technology stocks. 'Investors adopting such a strategy should be careful, as the recent downturn could easily worsen before the end of the year and shave the price of these two stocks significantly,' he said. Giordano surged 8.53 per cent to $4.45 after forming a retail clothing joint venture with China Resources Enterprise, a sign of detente in the firm's relations with Beijing authorities. The investment was small but 'it's a sentiment thing more than anything else', Mr Hutcheson said. 'Giordano's problem was this five-year legacy that China hates it.'