Hong Kong stocks fell for fifth straight day on Tuesday, as a strong rally petered out amid worsening COVID-19 situation in China, though China stocks were aided by fresh moves to aid a struggling property sector.

** The Hang Seng index dropped 1.3%, while the Hong Kong China Enterprises Index lost 1.7%.

** Both the CSI300 index and the Shanghai Composite Index were roughly flat.

** "Previously, Hong Kong stocks witnessed rapid gains. It's natural for shares to pull back now and consolidate," said Linus Yip, strategist at First Shanghai Securities, adding risk appetite is also sapped by fresh COVID flare-ups on the mainland.

** Beijing shut parks and museums on Tuesday, while more Chinese cities resumed mass testing, as China fights a fresh nationwide spike in cases that has deepened concerns about its economy.

** The tally on COVID-19 case numbers has surged further over the past week, and business activity still shows broad-based weakness, Nomura said in a note to clients.

** Sentiment in China was steadied by news that China's central bank will provide 200 billion yuan ($27.92 billion) in loans to six commercial banks for housing completions. It's the latest government effort to ease the sector's liquidity stress.

** The Chinese market was also aided by signs of ample liquidity, evidenced by China's key money rate falling to a near 23-month low on Tuesday.

** China's financials and energy shares rose, but health and environment protection sectors fell.

** In Hong Kong, tech stocks slumped 3.2%.