Hong Kong shares down 1.7%, snap 6-session rally

Hong Kong shares snapped a six-session winning streak on Monday as investors sold some of this year's outperformers after Beijing failed to meet expectations for a cut in the bank reserve ratio over the week-long Lunar New Year holiday.
The Hang Seng Index closed down 1.66% at 20,160.41 points. The China Enterprises Index of top mainland listings in Hong Kong finished down 2.63% at 11,145.6.
The Shanghai Composite Index ended down 1.47% at 2,285.04, slipping below the 2,300 level it only broke through on the Friday before the Lunar New Year holiday.
The Hang Seng Index gave up almost its entire gain from last week, weighed down by soft mainland markets and with Chinese banks and property stocks among the hardest hit. Weaker-than-expected U.S. data also hurt exporters, with Li & Fung Ltd slumping 4.9%.
Country Garden Holdings Co slumped 11.3% in more than three times its 30-day average, leading percentage losses among Chinese property developers after Citi downgraded the stock from neutral to sell. In a report on Monday, Citi property analysts said they "see limited room for further sales growth in 2012" for Country Garden. They expect a possible margin squeeze as "its mass-market products will be more vulnerable in the downturn and price cuts at a lagging pace and to a larger extent will be necessary."