Hong Kong stocks closed in green on Monday, extending gains from the prior week, as sentiment remained upbeat on expectations that China will roll out policy easing measures in response to its weak economic indicators.

The Hang Seng Index added 0.31%, or 53.03 points, to end at 17,422.12. The Hang Seng China Enterprises Index also inched up by 0.31%, or 18.64 points, to finish at 6,090.16.

Investors remain in a buying mood amid hopes that the US Federal Reserve will slash interest rates this week and that Beijing will soon unveil fresh efforts to prop up the economy as recovery falters.

This comes after data released over the weekend showed China's industrial output, retail sales, and fixed-asset investment fell short of expectations in August. Home prices in the mainland also saw their steepest decline in nine years.

The People's Bank of China could lower the reserve requirement ratio by 50 basis points this month and then by another half-point in the first half of 2025, Barclays was quoted by South China Morning Post as saying.

In corporate news, shares of Sino-Ocean Group Holding (HKG:3377) closed 11.5% higher on Monday after the real estate developer disclosed that it recorded contracted sales of about 2.06 billion yuan in August, with 178,900 square meters in gross floor area sold.

Meanwhile, China Boton Group (HKG:3318) reported a profit attributable to owners of 44.3 million yuan for the six months ended June 30, down from 65.4 million yuan a year ago. The company's shares closed nearly 7% lower on Monday.