The Hang Seng Index fell 0.3 per cent to 16,104.17 at 10.55am local time. The Tech Index lost 1.1 per cent, and the Shanghai Composite Index declined 0.2 per cent.
Longfor advanced 1.1 per cent to HK$9 while Henderson Land gained 0.2 per cent to HK$21.15 while Wharf REIC surged 2 per cent to HK$25.90.
Chinese banks lowered the five-year loan prime rate, a benchmark for pricing onshore home mortgages, to 3.95 per cent from 4.2 per cent at the monthly setting. Economists had predicted a 10-basis point cut in a Bloomberg survey. The one-year rate was unchanged at 3.45 per cent, versus forecasts for a 5-basis point reduction.
BYD launches low-price plug-in hybrid, sparking price war in China
BYD launches low-price plug-in hybrid, sparking price war in China
“There is no shortage of stabilisation measures in place so far, but they have yet to convince the market,” said Gary Ng, senior economist at Natixis. “Investors are seeking more signals from Beijing to get a clearer understanding of future policy directions.”
Elsewhere, HSBC climbed 0.2 per cent to HK$62.50 and its subsidiary Hang Seng Bank rose 0.6 per cent to HK$81.45. The UK banking group, which counts Hong Kong as its single biggest market, may report a 76 per cent jump in annual net profit in 2023 according to consensus among analysts tracked by Bloomberg. The report is due on Wednesday.
Other major Asian markets traded lower. The Kospi Index in South Korea tumbled 1.1 per cent while the S&P ASX 200 in Australia weakened 0.2 per cent and the Nikkei 225 in Japan fell 0.1 per cent.