HK stock index down nearly 1 percent

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Hong Kong shares edged lower in lethargic trade Wednesday as investors sold banks and developers.

The blue-chip Hang Seng Index fell 100.09 points, or 0.8 percent, to 12,815.80.

Trading volumes were among the lowest this year, analysts said, amid a dearth of buying opportunities for long- and short-term investors.

"Long-term funds aren't willing to go into the market because economic indicators are still weakening. Short-term funds aren't going in because there's not the volatility to make a quick profit," said Linus Yip, a strategist at First Shanghai Securities.

Banks took a hit from lingering concerns about the financial sector after global financial firms announced layoffs earlier this week.

Standard Chartered retreated 4.2 percent to $92 Hong Kong dollars, major Chinese lender ICBC lost 3.1 percent to HK$3.49 and China Construction Bank declined 3.4 percent to HK$3.75.

The dour outlook for property markets hurt developers. Leading Hong Kong firm Sun Hung Kai fell 3 percent to HK$53.5, and Henderson Land fell 5.4 percent to HK$23.85.

In lending markets, Hong Kong's interbank lending rate, known as Hibor, for three-month loans was unchanged at 2.1.

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Stock Exchange of Hong Kong: http://www.hkex.com.hk

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