Hong Kong shares declined Wednesday in mixed trading with losses led by China Mobile, as investors remained cautious following the recent slump in Asian markets.

The blue-chip Hang Seng Index fell 41.92 points, or 0.26 percent, to 15,822.64. The Hang Seng rose 0.37 percent Tuesday after plunging 3.1 percent Monday to 15,805.52, below the psychological 16,000 level.

"The stock market was directionless," said Kenny Tang, associate director of Tung Tai Securities.

Investors are cautious of a further market retreat after the Hang Seng fell below the 16,000-level, and continuing concerns about the U.S. interest rate outlook also weighed on traders, Tang said.

China Mobile (Hong Kong) Ltd. dropped 1.7 percent to HK$40.30, and Chinese computer maker Lenovo Group Ltd. fell 1.9 percent to HK$2.55 a day before it was due to announce annual results.

Shipping and port operator COSCO Pacific Ltd. lost 1.9 percent, finishing at HK$15.60.

Bucking the trend, Yue Yuen Industrial (Holdings) Ltd., a major shoe maker, surged 5.3 percent to HK$21.75. Bank HSBC Holdings PLC edged up 0.2 percent to HK$134.70.