Hong Kong Stocks Pull Back Amid Profit-taking

MarketWatch Pulse

Hong Kong stocks fell early Tuesday morning, retreating from a seven-year closing high as investors booked some profit after eight straight sessions of advances. The Hang Seng Index lost 0.6%, while the mainland-China-tracking Hang Seng China Enterprises Index traded down 0.7%. Index heavyweight Tencent Holdings Ltd. sank 5.1% after exchange filings showed the online-content company's chairman, Pony Ma, sold 2 million shares last week for 3.2 billion Hong Kong dollars ($416 million), decreasing his personal stake in Tencent to 9.65%. Macau gaming stocks extended losses, as investors worried China might restrict mainland tourist visits to Macau after announcing a new internal visa arrangement on Monday to slash visits to Hong Kong by residents from the neighboring city of Shenzhen. MGM China Holdings Ltd. declined 2.8%, Sands China Ltd. fell 2.4%, Wynn Macau Ltd. dropped 1.7%, Galaxy Entertainment Group Ltd. shed 1.5%, and Melco Crown Entertainment Ltd. lost 1.2%. Other market movers included China Merchants Bank Co. , pulling back 5.9% following a previous 24.8% surge, and bourse operator Hong Kong Exchange & Clearing Ltd. , giving up 2.6% after a 19.4% jump in the previous session. However, China Railway Construction Corp. climbed 3.1% after the company signed a deal with Egyptian National Railways for a railway-network project worth about $600 million. China Railway Group Ltd. also jumped 3.8%. On the mainland, the Shanghai Composite Index continued to edge higher, rising 0.2% after hitting a new seven-year high in the previous day.

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