Hong Kong shares fell from a 3-1/2-month high on Tuesday, while China markets looked set for their first loss in five days, hurt by a series of fund raising moves and Goldman Sachs' exit from Industrial and Commercial Bank of China.
At midday, the Hang Seng Index was down 0.5% at 23,375.5 points after closing on Monday at its highest since early February. The China Enterprises Index of the top Chinese listings in Hong Kong shed 1.1%.
The Shanghai Composite Index and the CSI300 of the leading Shanghai and Shenzhen A-share listings each slipped 0.2%.
Gains in the previous four sessions helped both onshore Chinese indexes rebound decisively from their respective 50-day moving averages in improved volume, positive technical signs that suggest further gains could be in store.
"I think it's still too early to say this constitutes a fundamental shift in sentiment," said Wang Ao-chao, UOB-Kay Hian's Shanghai-based head of research.
"The moves have been very sector-specific on hopes of sectoral changes as the new Chinese leadership convenes various meetings in the upcoming months leading to the plenum," Wang added.
Shares of Industrial and Commercial Bank of China (ICBC) fell 2% in Hong Kong and 0.2% in Shanghai after Goldman Sachs ended a seven-year investment in the country's largest lender.
The magnitude of ICBC's loss in Hong Kong was smaller than the 2.5% discount Goldman offered its remaining 1.585 bln H-share stake, pointing at robust demand despite being priced at the top end of the marketed HK$5.47-$5.50 range.
PICC Property & Casualty fell 2.7% in Hong Kong after it announced plans for a rights issue in Hong Kong and China to raise a combined net 5.76 bln yuan ($938.28 mln) to strengthen its capital base and improve its solvency margin.
Hengan International fell 1.3% after the Chinese diaper and sanitary napkin maker announced plans to raise up to $550 mln from an issue of five-year convertible bonds.
Cosco Pacific jumped 3% in Hong Kong after it agreed to sell its stake in COSCO Container Industries Ltd to one of its sister companies wholly owned by its state-owned parent China Ocean Shipping (Group) Company.
Gains on the day helped Cosco Pacific move into positive territory for the year. It is now up 0.7% in 2013, compared to the 3.2% rise in the Hang Seng Index.
