Hong Kong stocks closed lower on Wednesday as investors took profits after recent gains. The Hang Seng Index finished down 0.4% at 21,182.20.

Trading was relatively quiet ahead of the long Labour Day holiday weekend. Some investors also remained cautious about the outlook for the Chinese economy.

“Profit-taking was the main driver of the market’s decline today,” said Alex Wong, a director at Ample Finance Group. “Investors are also concerned about the potential for further policy tightening in China.”

Among the biggest losers were property developers, with China Resources Land falling 2.1% and Henderson Land Development dropping 1.5%. Banks also came under pressure, with HSBC Holdings down 0.6% and Bank of China losing 0.9%.

However, some stocks bucked the trend, with Tencent Holdings rising 1.2% and China Mobile gaining 0.5%.

Looking ahead, analysts expect the Hong Kong stock market to remain volatile in the near term, with investors closely watching developments in China and the global economy.