Hong Kong stocks fell 380.44 points, or 1.84 percent, to close at 20,341.64 Thursday.
Chinese equities closed slightly lower Thursday as heavyweights weakened in the afternoon trade.
Ctrip.com International Ltd, an online travel service provider, plans to invest $88 million to acquire a 90 percent stake in a travel service unit of Wing On Travel (Holdings) Limited of Hong Kong, the company said in a statement yesterday.
China First Heavy Industries Co became the first company in at least a year to fail to raise the maximum amount sought in a Shanghai IPO after the benchmark index fell 15 percent from its 2009 high.
Mainland stocks advanced the most in six weeks, led by financial companies and commodity producers, as investors speculated recent losses that made the Shanghai Composite Index the world's worst performer were overdone.
Shanghai copper rose 2.8 percent yesterday and London metal extended gains, after the latest batch of positive US data, this time existing home sales, helped soothe jangled investor nerves.
Hanwang Technology, a Chinese maker of e-readers and portable devices with handwriting recognition, hopes to raise 249 million yuan through an initial public offering to fund technology upgrades and product research.
Hong Kong stocks rose 449.9 points, or 2.22 percent, to close at 20,722.08 points Wednesday.
Chinese equities ended a three-day decline by surging 2.36 percent to climb above the 3,000-point mark Wednesday, led by financial and energy shares.
Shares of China Eastern Airlines Corp tumbled to their daily downward limit yesterday after 1.406 billion new shares became tradeable.
Chinese stocks may fall further before reaching a "bottom" in April or May as money supply growth slows and policy risks increase, JPMorgan Chase & Co said.
Mainland stocks fell, as concern the government will curb lending spurred declines by developers and overshadowed gains by commodity producers.