"All of a sudden, in the afternoon, the bottom just fell out," said Fulbright Securities general manager Francis Lun Sheung- nim. "The market went into reverse gear."

The Hang Seng Index fell 200.68 points, or 1.1 percent, to close at 18,178.05. The blue-chip measure rose as much as 402.26 points, or 2.2 percent, during the morning session to hit an intraday high of 18,780.96.

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Turnover rose to HK$68.4 billion, from HK$65.1 billion on Tuesday. Shares of HSBC (0005) fell 2.6 percent in heavy trading to close at HK$63.95. Lun said the Hang Seng Index could fall almost 900 points over the next few days to hit 17,300 points. "I think the market really is way ahead of its fundamentals," Lun said. "We do not actually see any green shoots of recovery - I think that's overdone."

Shares of Swire Pacific (0019) plunged 6.6 percent to HK$73.05. Hang Lung Properties (0101) shed 4.5 percent to end trading at HK$24.50, while Wharf (Holdings) (0004) lost 4.3 percent to HK$31.45. The Hang Seng China Enterprises Index of H shares inched up 9.28 points, or 0.1 percent, to 10,971.89.

Zhejiang Expressway (0576) jumped 4.1 percent, closing at HK$6.40, after fellow toll- road operator Sichuan Expressway (0107) announced a plan to issue A shares. The Shanghai Composite Index added 52.104 points, or 1.7 percent, to 3,060.254. BENJAMIN SCENT