Laopu Gold (6181.HK) fell nearly 8% in late afternoon Hong Kong trading to HK$364, as the Hang Seng Index widened its decline to 1%. The stock was the biggest decliner among blue-chip constituents, reversing from a record high set in the previous session when it surged more than 12%.

The company's recent discount promotions have raised concerns about its brand premium pricing power. Morgan Stanley has cut its target price on the stock from HK$590 to HK$505, maintaining an "overweight" rating, and expects second-quarter revenue to decline more than 30% from a year earlier.