H shares held well yesterday even if there was panic selling in Tokyo and other Asian markets yesterday.

The decline today was a disappointing end to the year. The weak performance was attributable to weak Asian stocks as well as profit-taking after recent gains.

Regional markets are higher in the afternoon which helped the Hong Kong market up.

I think the market could test 15,900 today but profit-taking will set in at that level.

The market seems to have found support at 15,300 this morning. I think the fact that Nasdaq recovered on bargain hunting in some tech stocks in late trade on Wednesday has stopped stocks falling so sharply here.

But the HSI needs to break 14,800 to confirm we're heading higher.