Hong Kong stocks closed slightly lower on Wednesday despite a morning session rally amid market concerns of rising Sino-US trade tensions.

The benchmark Hang Seng Index once slumped to 20,417 points before rallying to 20,827, dragged down by damped market sentiment as a tariff war looms. It closed at 20,597, 0.93 percent or 192 points lower from Tuesday's close, after remaining flat in the afternoon session as the US Postal Service suspended the delivery of packages from China and Hong Kong.

The turnover reached HK$192.2 billion, hitting a nearly one-month high, boosted by the mainland market’s reopening after the Lunar New Year holiday.

The Hang Seng Tech Index went down by 0.95 percent to 4,930 points.