Hong Kong stocks spent their third day heading towards the 11,000-point level on the Hang Seng Index as investors cashed out their gains from the rally of April and last month.
The index slipped 78.67 points or 0.69 per cent to 11,301.94.
'There's a lot hanging over it so most likely the market will enter a consolidation phase but hopefully we'll see some daylight in the third quarter,' said Herbert Lau Chung-kwan, research head at Celestial Securities.
Property, banking and telecommunications stocks were all grappling with their own personal demons as the HSI, having fallen through the key 11,500-point support level earlier in the week continued to inch towards the 11,000 level - seen by many as the next line of resistance.
Property stocks weakened following news of more discounting in the residential sector by industry heavyweights such as Sun Hung Kai Properties and Cheung Kong.
'It's telling you that the hype about the recent rally should come to an end because the property market has absorbed a lot of buying interest over last three months,' said Mr Lau.
