Hong Kong stocks fell as a rally in Chinese tech companies ran out of steam even as state-run mainland media sought to temper worries about market regulations and policies. The Hang Seng Index slipped from a three-week high, losing 0.1 per cent to 26,320.93 at the close of trading on Wednesday. The benchmark earlier advanced by as much as 0.8 per cent. The Shanghai Composite Index declined 0.04 per cent to also snap a two-day rally. The Hang Seng Tech Index retreated 0.2 per cent. Hua Hong Semiconductor led losses with a 6.9 per cent plunge as a major state-backed semiconductor fund cut its holding by 1.07 million shares, according to a local media report. Industry peer SMIC lost 2.3 per cent. They overshadowed gains in Tencent Holdings and Meituan. An 18 per cent rebound in shares of Chinese tech giants since August 20, aided by a calmer regulatory scene, may have led investors to lock up their profits. Kuaishou Technology slumped 2.6 per cent, after a surge of 26.2 per cent last week when it was added to the Stock Connect scheme. “Investors have different opinions [on the outlook of tech stocks],” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. Yip said. “Some investors might not want to chase the big rebound.” Before today, mainland Chinese funds have been flocking back to tech stocks. Net buying of Tencent has totalled HK$2.5 billion (US$324.2 million) this month, while Kuaishou Technology saw HK$1.4 billion of net inflows since it was added to the Connect trading link. State-run newspaper People’s Daily said in a commentary late Tuesday that China would enhance transparency and predictability of its policies. Tightening regulations were not aimed at any specific sector or company and efforts to tackle irregularities would underpin the nation’s development. It followed official comments pledging state support for private businesses. “Tech stocks have rebounded a lot already, and [they] are currently facing the key resistance level, so upside potential is limited for further rebound,” said Edison Pun, senior market analyst at Saxo Markets. “Policy control over the tech giants will still be there, which could hurt the long-term confidence.” Agricultural and plantation stocks surged after the Ministry of Agriculture and Rural Affairs said on its website that Beijing will issue an all-out action plan to revitalise the industry. Yuan Longping High-tech Agriculture surged by 8.7 per cent and Lingnian Holdings added 8 per cent. China Railway Special Cargo Logistics surged 44 per cent to 5.70 yuan on its first day of trading on the Shenzhen stock exchange.