China, HK stocks head for sixth straight losing month on faltering economy

** Hong Kong's Hang Seng Index dropped 1% and the Hang Seng China Enterprises Index fell 1.1%. ** Hang Seng was on track for its worst January performance since 2016, with tech and property stocks leading the decline.

China and Hong Kong stocks extended declines on the last trading day of January, both heading for a sixth straight losing month as economic data and stimulus measures disappoint.

** The blue-chip CSI 300 Index slipped 0.2% and the Shanghai Composite Index dropped 0.4%. ** Hong Kong's Hang Seng Index dropped 1% and the Hang Seng China Enterprises Index fell 1.1%.

** Hang Seng was on track for its worst January performance since 2016, with tech and property stocks leading the decline. ** Hang Seng Tech Index and Hong Kong-listed mainland property stocks tumbled 19% each so far in January.

** China's manufacturing activity contracted for a fourth straight month in January, an official factory survey showed on Wednesday. ** The official purchasing managers' index (PMI) rose to 49.2 in January from 49.0 in December, below the 50-mark separating growth from contraction and was in line with a median forecast of 49.2 in a Reuters poll.

** The manufacturing data "suggested that disinflationary pressures continued in January," Goldman Sachs economists said in a note. ** More Chinese cities, including Suzhou and Shanghai, have relaxed home purchase restrictions this week in a bid to revive demand, yet property stocks remained weak as the policies are seen as piecemeal.

** China shows a more proactive stance to shore up growth, HSBC analysts said in a note. ** "Nonetheless, consistency and persistence of policy support will still be needed to help achieve a growth target of 'around 5%', they said.

** In China domestic A-shares, tourism and healthcare stocks were among the worst performers, losing 2.9% and 2.4%, respectively. ** Meanwhile, yields on the benchmark 10-year government bond, fell nearly 2 basis points to 2.4275%, the lowest since June 18, 2002, indicating the persistent investor expectations for imminent monetary easing.