Hong Kong stocks retreated on Monday despite speculation that policymakers will embark on easing measures after China's benchmark index approached three-year low. Persistent tensions with Japan as well as lingering worries over Eurozone's financial instability weighted down on China's blue chips. The Hang Seng Index declined by 0.19% to close at 20,694.70. Only three in nine sectors included in the index advanced. The biggest gains posted telecommunications and technology firms. China Mobile and China Unicom Hong Kong added 0.47 and 0.16% while Tencent Holdings climbed 0.47%. Weighting down on the Hong Kong equities, basic materials and oil and gas companies dropped 0.99% and 0.42%. Aluminum Corp of China (CHALCO) slid 1.22% while CNOOC and PertoChina tumbled 0.51% and 0.39% amid lower crude oil prices.