Around the World's Markets: Hong Kong

STOCKS SLID as profit-taking ate into Monday's 4.7 per cent surge, which had investors sitting on the sidelines digesting the gains. The Hang Seng index eased 778 points, nearly 1 per cent, to 10,351, with dealers concerned that recent rises are not justified by economic fundamentals.

China Overseas Land and Investment fell by more than 8 per cent as the Chinese-owned developer used the fall in interest rates to raise HK379m in equity capital, raising fears of earnings per share dilution.