Hong Kong stocks closed lower Thursday, led by profit-taking after the biggest one-day gain on the Hang Seng Index in more than six years and renewed concerns over subprime mortgage problems in the United States.

The benchmark Hang Seng Index fell 97.31 points, or 0.4 percent, to 22,439.36. Turnover totaled 85.16 billion HK dollars, up from 76.00 billion HK dollars Wednesday. The index rose as much as 260.06 points, or 1.2 percent, to 22,796.73 in the morning session. But it lost steam toward the end of the session on declines of some index heavyweights and Chinese financial stocks.

"It's very normal for some investors to take profits after yesterday's strong rally," said Francis Lun, a director at Fulbright Securities Ltd. "I strongly believe corporate earnings are the fundamentals that will support the market to climb higher."

The Hang Seng Index rose 628.68 points, or 2.9 percent Wednesday on bargain hunting and an overnight gain on Wall Street, which was the biggest gain since a 646-point increase on Jan. 4, 2001.

The news about sub-prime and credit crisis continued touching the market's nerve despite the rumors that the detailed rules for implementing insurance QDII would be promulgated within on month.

HSBC ended 0.1 percent lower at 144.50 HK dollars, after rising as much as 0.6 percent earlier in the session.

Traders said they still expect the benchmark index to hit 23, 000 or surpass it next week, when heavyweights China Mobile and Industrial and Commercial Bank of China are expected to post strong first-half earnings.

On the Chinese finance stocks side, ICBC fell 0.8 percent to 4.68 HK dollars, wiping out an earlier gain of 2.3 percent. Bank of China slid 0.51 percent after the bank said its interim results would disclose sub-prime information. CITIC Bank lost 0.69 percent. CM Bank lifted 2.47 percent on the eve of results announcement.

China Mobile, the country's largest mobile operator by subscribers, finished down 1.1 percent at 88.00 HK dollars, after a 1.4 percent rise in the morning.

The three insurers China Life, Ping An and PICC P&C shed 0.32 percent to 1.08 percent.