Most investors still believe the influx of cash, or the influx of external funds, will continue.

Most H-shares have reached irrational highs so investors are now taking profit.

Overbuying of China stocks was obvious in the last two weeks. Investors are taking profits gradually, but some are still chasing laggards such as commodity stocks.

I won't be surprised to see more falls in the property and financial sectors even if presales of apartments continue to do well. Investors are worried now by prospects of rate hikes larger than those in previous months.

Funds' selective buying helped support the index. The market extended its gains in late trade also due to some futures-related trading.

The local market continued to post losses as it was affected by the retreat of Wall Street and the Japanese market.