SHANGHAI Feb 27 Hong Kong stocks fell for the
third straight session on Monday, as the market's strong
months-long rally showed signs of fatigue.
Sentiment was also hurt by bearishness in mainland China
markets, where blue chips had their worst day in two months amid
worries about tighter regulation.
The Hang Seng index dropped 0.2 percent to 23,919.46
points, while the Hong Kong China Enterprises Index lost
0.8 percent, to 10,338.12.
The Hang Seng is under increasing pressure from
profit-taking, having climbed over 8 percent so far this year on
the back of Wall Street bullishness and share purchases by
mainland investors, including insurers.
The gains had pushed it well into technically overbought
territory, leaving it vulnerable to a pullback.
Gao Ting, head of China strategy at UBS Securities, said
regulators have set risk prevention as their main emphasis,
reducing the chance of aggressive buying by insurers on the
Still, "we expect insurers to be the main contributor of
southbound trading this year," he said.
Most sectors fell on Monday, with energy shares
among the worst performers.
Hong Kong Exchanges and Clearing Ltd (HKEX) fell
1.3 percent, after the city's stock exchange operator said its
2016 net profit fell 27 percent due to a decline in trading
(Reporting by Samuel Shen and John Ruwitch; Editing by Kim