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HONG KONG, Nov 15 (Reuters) - Chinese stocks had their biggest weekly loss since July, while Hong Kong shares erased early gains to end slightly lower on Friday as scepticism that China can mount a sustained economic recovery remained prevalent in the market.

That was underscored when industrial output grew 5.3% year on year in October, slowing from the previous month and missing expectations.

Disappointing follow-up stimulus measures from Beijing and concerns over deteriorating Sino-U.S. relations in the wake of Donald Trump's election victory continue to weigh on the market.

China's blue-chip CSI 300 Index .CSI300 fell 1.8% bringing losses this week to 3.3%, the most since July. The Shanghai Composite Index .SSEC lost 1.5%.

Hong Kong's benchmark Hang Seng Index .HSI surrendered earlier gains though its decline was less than 0.1%. That marked its sixth consecutive day of losses, its longest losing streak since January.

The real estate sector led losses after data showed China new home prices in October fell the most year on year since 2015. The CSI 300 Real Estate Index .CSI000952 slid 2.6% and the Hang Seng Mainland Developer Index .HSMPI eased 0.4%.

"Since there is still no conviction for economic and property market recovery, most investors are still sceptical about the recent Chinese stock market recovery," Chi Lo, senior market strategist at BNP Paribas Asset Management, said in a note to clients.

"They continue to hold Chinese stocks as a tactical trade due to cheap valuations and await confirmation by Beijing on assertive reflation." In one bright sign though, retail sales rose 4.8%, accelerating from September and marking the fastest growth since February.

(Reporting by Hong Kong Newsroom; Editing by Edwina Gibbs)

((jiaxing.li@tr.com))