SELLING of Hong Kong stocks continued in London overnight following the 290-point fall in Hong Kong yesterday. Key constituents dropped by between one and three London spreads last night. By estimated nominal prices at the London close last night, HSBC Holdings was down 75 cents from the Hong Kong close at $87.25. Sun Hung Kai Properties was down 40 cents at $54.10. Cheung Kong shed 25 cents to $36, while Jardine Matheson lost 30 cents to $73.20. Swire Pacific A lost 25 cents to $50.75. In local trading yesterday, the market's upward momentum finally ended, with the Hang Seng Index plummeting after chalking up three consecutive records in the previous days. The technical adjustment knocked 290.8 points or 3.01 per cent off the index, which closed at 9,352.11. Turnover was $9.23 billion. The plunge, which surpassed some people's expectations, was welcomed by brokers who only moaned about how long it had taken to arrive. ''I think the correction was fully expected by the market,'' said Barclays de Zoete Wedd director K.S. Ng. Jardine Fleming Broking director W.K. Wan said: ''The market has been overbought and the internal dynamics of the market called for a long overdue correction.'' Trading was active, but dominated by new listing Maanshan Iron and Steel, which accounted for $2.08 billion - or about 22 per cent - of the turnover. ''There was little surprise; we knew it would fall sooner or later. It's just that this drop was so sudden and vast,'' said Mr Wan. DBS Securities research director Percy Au-young said: ''It was a technical correction. As the index was close to the 9,700 level, selling pressure had become strong.'' Brokers said that rumours of imminent cash calls by some blue chips had put downward pressure on the market. The absence of buyers from Japan, where it was a public holiday, contributed to the lack of upward push, according to Baring Securities assistant director James Slade. Brokers expected the market to continue its consolidation in the short term.