After closing for a holiday of the 12th anniversary of Hong Kong's return to China on Wednesday, local stocks gained sharply at the beginning and ended low at 18, 178.05 on Thursday.

The Hang Seng index went down 200.68 points, or 1.09 percent, trading between 18,780.96 and 18,053.10. Turnover totaled 68.38 billion HK dollars (8.83 billion U.S. dollars).

Although the economic conditions in Chinese mainland and elsewhere seems coming up, there would be few rooms for further gains in near term due to high pressure of profit-taking as expected by analysts.

The benchmark Shanghai Composite Index Thursday closed at 3060.25, up 1.7 percent, its highest level since June 10, 2008.

Hong Kong shares initially rose sharply in the morning session, lifted by Chinese manufacturing activity data Wednesday showing the fourth straight month of expansion in June.

China's official Purchasing Managers Index, issued by the China Federation of Logistics and Purchasing, rose to 53.2 in June from 53.1 in May.

A number above 50 indicates expansion. Before March the index was under 50 for five consecutive months.

The latest statistics seem to suggest a clear recovering trend, according to brokerage ICEA on Thursday.

Still, the brokerage said it expects further upside in the Hang Seng Index to be limited, and projects a near-term trading range of between 17,000 and 19,000 points.

Property developers were among the biggest blue-chip decliners, with Swire Pacific falling 6.6 percent to 73.05 HK dollars, Hang Lung Properties down 4.5 percent at 24.50 HK dollars, and Wharf Holdings 4.3 percent lower at 31.45 HK dollars.

Sun Hung Kai Properties fell 1.0 percent to 95.80 HK dollars, ignoring comments from Morgan Stanley that the company is the best all-around play in the city's property market.

Heavyweight HSBC was also down, losing 2.6 percent to 63.95 HK dollars.

Source: Xinhua