The benchmark Hang Seng Index gave up 0.28 percent, or 57.12 points, to 20,333.37 on turnover of HK$61.64 billion ($7.95 billion). The market was also weighed by a report that China's new yuan loans fell short of expectations in January, heightening concerns that Beijing would continue to keep tight credit conditions. "The figures contradicted the general view that Chinese banks have begun to loosen their credit policy in January, and offset the positive impact of the stronger-than-expected PMI data released on the same day," said Jackson Wong, an investment manager at Tanrich Securities. Official figures Wednesday showed China's official purchasing managers index (PMI) of manufacturing activity rose to 50.5 in January, up from 50.3 in December, which analysts said could delay further monetary easing. "Obviously this lessens the risk that China's economy will have a hard landing, but the flip side is that the long-awaited RRR (reserve requirement ratio) cut will likely be pushed back," said Daniel So, a strategist at SHK Financial. Mainland lenders and insurers were mostly down. Industrial & Commercial Bank of China dropped 1.3 percent to HK$5.36 and China Life was down 1.1 percent at HK$22.60. Chinese online game and social-networking services company Tencent Holdings fell 3.2 percent to HK$183.70, although it was up 22 percent for January. Hong Kong developers were mixed after Financial Secretary John Tsang said in his annual budget speech the government would continue to boost land supply but was silent on whether it would consider relaxing measures aimed at taming property prices. Henderson Land rose 0.7 percent to HK$42.40 and Sun Hung Kai Properties was flat at HK$107.40, while Cheung Kong dropped 0.9 percent to HK$103.50. Chinese shares shed 1.07. The Shanghai Composite Index, which covers A and B shares, ended down 24.53 points at 2,268.08 on turnover of 48.6 billion yuan ($7.7 billion). "There is likelihood for the Shanghai index to test the year low... if the central bank does not cut the reserve requirement ratio for banks this month," Gold State Securities analyst Wu Yu told Dow Jones Newswires. In December, China moved to ease credit by trimming bank reserves for the first time in three years to help boost growth. Resources firms, including metals and coal companies, led the declines, tracking weaker global commodities prices. Shenzhen Zhongjin Lingnan Nonfemet lost 4.7 percent to 9.09 yuan and Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech dropped 3.9 percent to 44.73 yuan. Henan Shenhuo Coal and Power slumped 6.1 percent to 10.18 yuan and Beijing Haohua Energy Resource slid 4.3 percent to 18.94 yuan.