HK, China shares lower as rally proves short-lived


12/06/2012 09:37 AST  Reuters

Hong Kong stocks traced a pullback in global markets on Tuesday over worries about the euro zone and limited supported from data that showed Chinese bank lending last month was stronger than forecast.

Uncertainty over the details of an EU bailout for Spanish banks kept investors from chasing Monday's rally, with funds mostly on the sidelines while morning turnover in Hong Kong fell to its lowest level this year.

Low volumes and high levels of short-selling have left the benchmark susceptible to sharp moves and intra-day reversals, with investors remain unwilling to hold positions for very long.

The Hang Seng index closed the session down 0.6 percent. Large-caps like HSBC Holdings and Tencent , which had led the previous session's rally, were among the biggest drags on the benchmark.

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