Chinese equities fell on Wednesday following media reports that some major banks would stop lending for the rest of January and the central bank would increase interest rate on Friday.
Hong Kong stocks fell 391.81 points, or 1.81 percent, to close at 21,286.17 on Wednesday.
The fourth set of eight companies listed on China's NASDAQ-like ChiNext stock exchange began trading today. The total number of companies listed on ChiNext reached 50.
The share price of Air China, China's largest air carrier, closed up at midday Wednesday in Shanghai against widespread losses across the board, after the company announced an expected return to profit in 2009.
China Financial Futures Exchange (CFFEX) yesterday announced revised trading rules for stock index futures, which investors are expected to begin trading in April.
As bells are going to ring out in Shanghai on Thursday to mark the start of the 100-day countdown to the 2010 World Expo, some fair-related stocks have reason to celebrate after witnessing an "Expo-fever" surge.
Hong Kong stocks gained 217.97 points, or 1.02 percent, to close at 21,677.98 on Tuesday.
The ChiNext closed down on Tuesday as 38 of the 42 shares at China's start-up board for small and medium-sized enterprises fell.
Chinese equities closed mixed on Tuesday, with the benchmark Shanghai Composite Index rose 0.30 percent for the fourth consecutive trading day to close at 3,246.87 points.
With economists predicting robust growth in China this year, the nation's capital market is also expected to maintain its upward march bolstered by strong earnings numbers from listed firms, said a leading securities firm.
UBS AG, which holds the largest investment quota of $800 million under the Qualified Foreign Institutional Investor (QFII) system in China, said yesterday it would trade China's new stock index futures.
Hong Kong stocks lost 194.15 points, or 0.9 percent, to close at 21,460.01 on Monday.