HONG KONG - Hong Kong's stock market ended lower Monday with the benchmark Hang Seng Index down 2.23 percent to close at 26,775.57 points.

The Hang Seng China Enterprises Index, the barometer of mainland companies, fell 2.54 percent to end at 9,080.19 points, while the Hang Seng Tech Index, the city’s technology stock gauge, declined 3.36 percent to end at 5,526.31 points.

Both the finance and technology sectors saw profit-taking, as all of the HSI's top 10 constituents showed a downtrend. 

Tencent, a Chinese tech giant, dropped 2.57 percent to HK$606. 

HSBC Holdings, the global banking giant, dipped 0.73 percent to HK$136.6.

Recent volatility in global markets and significant corrections were seen in both the Hong Kong and A-share markets since last Friday, Morgan Stanley stated in a research report. But effective cooling measures for A-shares, a strengthening USD, and the central government's long-term regulatory support for Hong Kong can sustainably provide positive liquidity support to both A-share and H-share markets.

The report also pointed out that large-cap stocks are preferred over small-cap ones in the A-share market currently. If global volatility subsides, H-shares will be more favored.

With inputs from Xinhua