** Hong Kong shares of Yum China Holdings 9987.HK slip 1.4% to HK$339.6, on track for the biggest one-day pct fall since June 3

** Stock touches the lowest point since June 12 on the second declining session

** U.S.-listed stock YUMC.N fell 1.4% on Tuesday

** Yum Brands YUM.N said it would sell its Pizza Hut chain for $2.7 billion, as the fast-food business struggles with stiff competition and cautious consumer spending

** Pizza Hut in Mainland China will be acquired by Yum China for $1.2 billion, while the rest of the business will go to private equity firm LongRange Capital for $1.5 billion

** Citi, with a "Buy" rating on Yum China, says a heavy investment into an existing brand, which is still at a revitalization stage, may seem aggressive for risk-averse investors

** Morningstar lifts fair value estimate for wide-moat Yum China by 1% to $77, reflecting valuation accretion from the transaction

** "Full ownership allows faster rollout of menu innovation, new store formats, and IP collaborations, enabling closer alignment with consumer trends and supporting sales growth" - Morningstar

** YTD, Hong Kong stock down 7.4%, U.S.-listed shares down 8.6%