Hong Kong stocks dropped on Monday, in line with broader Asia, as growing concerns about a new wave of coronavirus infections prompted a selloff in equities.

At the close of trade, the Hang Seng index was down 524.43 points, or 2.16pc, at 23,776.95. The Hang Seng China Enterprises index fell 1.8pc to 9,655.83.

The sub-index of the Hang Seng tracking energy shares dipped 2.1pc, while the IT sector dipped 2.19pc, the financial sector dropped 1.97pc and the property sector fell 2.3pc.

The top gainer on the Hang Seng was CK Infrastructure Holdings Ltd, up 0.24pc, while the biggest loser was Techtronic Industries Co Ltd, which fell 4.87pc.

Several districts in Beijing reinstated security checkpoints, ordered residents be tested and closed schools on Monday in response to an unexpected resurgence of the coronavirus in the Chinese capital.

Adding pressure on the market was weaker-than-expected factory data from the mainland.

China's factories stepped up production for a second straight month in May, as the country shook off the economic torpor of the coronavirus, although the weaker-than-expected gain suggested the recovery remained fragile.

Data on Monday also showed sustained contractions in retail sales and investment, a sign many sectors were still struggling with the effects of heavy shutdowns across the world's second-largest economy earlier this year.

China's main Shanghai Composite index closed down 1.02pc at 2,890.03 points, while the blue-chip CSI300 index ended down 1.2pc.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 2.24pc, while Japan's Nikkei index closed down 3.47pc.

The yuan was quoted at 7.0955 per US dollar at 0818 GMT, 0.14pc weaker than the previous close of 7.0859.

At close, China's A-shares were trading at a premium of 26.22pc over Hong Kong-listed H-shares.