Hong Kong stocks ended Tuesday's holiday-induced half-day session little changed, on caution amid a slowdown in Chinese manufacturing activity.

The Hang Seng Index closed fractionally higher at 20,225.11. The Hang Seng China Enterprises Index barely moved in negative territory to finish at 7,382.13.

China's factory industry had a weak start to the year, as the official NBS manufacturing PMI fell to 49.1 in January from 50.1 the previous month. A reading above 50 indicates expansion, while below 50 signals contraction.

The print marked the first decline in China's manufacturing activity since August 2024 and missed the median forecast of 50.1 in a Reuters poll. This unexpected slowdown intensified calls for further economic stimulus measures in the world's second-largest economy.

"The PMIs suggest that China's economy lost some momentum in January, despite tailwinds from recent policy easing. We think the slowdown at the start of the year will probably prove temporary, as fiscal stimulus should support economic growth in the near-term, with deficit spending likely to be front-loaded at the start of 2025," Zichun Huang of Capital Economics said in a note.

"But the disappointing PMI data underscores the difficulty policymakers face in achieving a sustained recovery in growth," she added.

Hong Kong financial markets will be closed for the rest of the week for the Lunar New Year holidays and reopen on Monday, Feb. 3.

In corporate news, shares of China South City Holdings (HKG:1668) plunged 9% after the property developer said it was slapped with a winding-up petition in Hong Kong over alleged non-payment of about $306.2 million related to bonds that matured in April 2024.