The sub-index of the Hang Seng tracking energy shares rose 0.1 percent, while the IT sector dipped 0.7 percent; the financial sector ended 0.3 percent higher and the property sector rose 0.1 percent. The top gainer on the Hang Seng was Hengan International Group Company Ltd, which rose 1.9 percent, while the biggest loser was CSPC Pharmaceutical Group Ltd, which fell 4.1 percent. About 1.76 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 2.34 billion.
China's A-shares traded at a premium of 16.80 percent over the Hong Kong-listed H-shares. The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was lower by 0.02 percent on the day at 5,011.62.
Earnings at China's industrial firms shrank for a second straight month in December, data showed on Monday, putting pressure on policymakers to support industries hurt by slowing prices and weak factory activity amid a protracted trade war with the United States. Over the weekend, China appointed banking veteran Yi Huiman to head the China Securities Regulatory Commission. All eyes are now set on Chinese Vice Premier Liu He's visit to the United States on Jan. 30-31 for the next round of trade negotiations with Washington.
The interest rate-sensitive Hong Kong market will also pay attention to the first Federal Open Market Committee meeting of 2019 at the US Federal Reserve, taking place on Jan. 29-30. Around the region, MSCI's Asia ex-Japan stock index was down 0.02 percent, while Japan's Nikkei index closed down 0.6 percent.