Hong Kong stocks fell at the end of Monday's trade as investor sentiment reflected a lack of enthusiasm the People's Bank of China's recent rate cut and concerns about the pace of fiscal stimulus measures.

The Hang Seng Index fell 1.57%, or 325.65 points, at 20,478.46. The Hang Seng China Enterprises index lost 1.76%, or 131.39 points, at 7,340.56.

The Chinese central bank cut its one-year loan prime rate to 3.1% from 3.35% and its five-year loan prime rate to 3.6% from 3.85% previously.

The rate reductions did not come as a surprise as Pan Gongsheng, the PBOC's governor, had announced the cuts on Oct. 18.

Meanwhile, investors are waiting for more information on fiscal support measures by the National People's Congress' standing committee in the next few weeks, a South China Morning Post (SCMP) report said.

There are expectations of an approval for higher government spending and a boost in the quota for government bond issues, according to the SCMP report.

In corporate news, Tak Lee Machinery (HKG:2102) closed 13% higher on Monday. The heavy equipment maker reported an attributable profit of HK$7.1 million for the fiscal year ended July 31, largely unchanged from the year-ago period.

On the other hand, telecom services provider Comba Telecom's (SGX:STC, HKG:2342) stocks plummeted over 3% as it announced its intention to terminate the proposed spin-off and A-share listing of unit Comba Network on Oct. 18.