The benchmark Hang Seng Index shed 67.51 points to close at 23,331.09 on turnover of HK$77.49 billion ($10.0 billion).

Chinese shares closed up 0.35 percent on their first day of trade for the year, following a near three percent rise in the previous two sessions.

The benchmark Shanghai Composite Index added 7.86 points to 2,276.99 on turnover of 114.6 billion yuan ($18.4 billion).