Updated at 4.26pm: Hong Kong stocks continued their orderly retreat from its recent peak after Wall Street bulls paused for thought in overnight trading. The Hang Seng Index closed 0.46 per cent or 51.87 points lower at 11,173.92. The two Chinese telecoms counters were again responsible for the bulk of the index's losses though they did manage to recover their composure after rumours about more competition and share placements sent them spiralling on Tuesday. China Mobile ended off 2.38 per cent at $26.65 while China Unicom closed 0.56 per cent down at $8.80. In overnight trading, a thinly traded Nasdaq weakened 2.79 per cent after a dizzying 35.92 per cent run-up from its September 21 low as the mini-bull run finally ran out of the steam. The bull pause was felt keenly among second-line technology stocks in Hong Kong as recent winners came under selling pressure including consumer electronics play Vtech Holdings which slid 5.38 per cent and Varitronix which lost 3.01 per cent. Pacific Century CyberWorks also pulled back from its post-bond issue gains toclose down 4.08 per cent at $2.35. Old economy stocks bucked the market trend as property and banking stocks reappeared on investor shopping lists. Gainers included Henderson Land and Sun Hung Kai Properties up 2.22 per cent and 2.62 per cent and Wing Lung Bank and Bank of East Asia (BEA) which were up 6.6 per cent and 2.45 per cent respectively. BEA was reported to be in talks to take stakes in two mainland banks. The bank yesterday acknowledged that it has applied for a mainland listing.