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Hong Kong blue chips opened 85 points higher following gains on Wall Street, but lost ground in profit-taking. Chinese stocks could see a technical rebound this week.

Hong Kong opened lower after Tuesday's sharp rise and retreated further in the early afternoon in line with a drop in Asian and Mainland Chinese markets but gained back some losses before closing.

Fear trumps all in the current market for China stocks. The gateway market of Hong Kong fell sharply again Monday in active, volatile trading despite the presence of conditions for a rebound.

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