“The [China currency] back to 7 [to the US dollar] further boosted market sentiment yesterday, but we see investors willing to take profit at this level,” said Alan Li, portfolio manager at Atta Capital. “The [Hang Seng] index is likely to adjust back to 27,000 before challenging 28,000.”

The Shanghai Composite Index fell 0.4 per cent to 2,978.60, while the CSI 300 of large cap stocks traded in Shanghai and Shenzhen fell 0.5 per cent to 3,984.88.

“China stocks, including A shares, were range trading today, with no clear direction.

For A shares, it seems 3,000 points is the resistance level,” said Kenny Wen, wealth management strategist at Everbright Sun.

In Hong Kong, China Mengniu Dairy was the benchmark’s top percentage loser, falling 5.9 per cent to HK$30.50. Analysts blamed the fall on the management of the milk and ice cream maker saying the core operating gross profit margin cannot meet its target.

Property stocks rose.

New World Development rose 1.2 per cent to HK$11.62, Sun Hung Kai Properties climbed 0.7 per cent to HK$121.30, China Overseas Land and Investment rose 1.1 per cent to HK$27.40, while Wharf Real Estate increased 1.2 per cent to HK$46.80.

Hong Kong Exchanges and Clearing rose 0.4 per cent to HK$251.20 after reporting a 10 per cent decline in its net profit during the third-quarter as stock market turnover and fundraising activities fell amid the ongoing anti-government protests.

Tencent rose 0.3 per cent to HK$334, marking its fifth consecutive session of gains.

China’s social media and gaming giant is expected to report its third quarter results next Wednesday after market close.

“We do believe they [Tencent] are doing not bad during the third quarter, so the share price is still quite strong at the moment,” said Louis Tse Ming-kwong, managing director of VC Asset Management in Hong Kong.

Bloomberg Intelligence expects that its mobile game business will be strong but online advertising will be “tepid.”

Haidilao, China’s largest hotpot restaurant chain, fell 2.9 per cent to HK$37 after reporting in an exchange filing that it has signed a non-binding memorandum of understanding on the “possible” acquisition of four companies.

On the mainland, blockchain, pig and chicken producers, and animal feed manufacturers fell.

Two popular stocks with northbound traders closed with small losses: Jiangsu Hengrui Medicine slipped 0.1 per cent to 91.19 yuan, while Kweichow Moutai, the world’s most valuable liquor maker, fell 0.5 per cent to 1,193.

Luxshare Precision Industry , the main assembler of Apple’s AirPods – dropped 1.5 per cent to 34.24 yuan. On Tuesday, amid a frenzy in trading of wireless bluetooth earbuds, rose 5.9 per cent to a fresh record of 34.70. The stock has gained about 220 per cent this year.

Meanwhile, China’s new Star Market technology board saw its first two stocks fall below or at their initial public offering prices.

Tianjin Jiuri New Materials, a photoinitiator producer, plunged 6.5 per cent to close at 66.35 yuan, below its initial public offering price of 66.68 yuan.

Shanghai Haohai Biological Technology, a biomedical materials maker, closed flat at 89.35 yuan, barely holding onto a premium to its IPO price of 89.23 yuan.

The Nasdaq-style Star board has produced some spectacular gains for mainland investors, and China over the weekend said it will copy its IPO streamlining process and smaller price curbs on to the broader markets.

Also in China, Postal Savings Bank of China, the operator of the biggest branch network among the country’s state-owned lenders, said it will do a secondary listing of its shares in Shanghai. That would be China’s largest fundraising exercise in more than four years and the world’s third-largest of 2019.

Additional reporting by Snow Xia, Yujing Liu and Pearl Liu