Hong Kong stocks closed lower in holiday-thinned trade on Friday as traders went into the Lunar New Year break fretting over China's economy and what they see as a lack of concrete action by leaders to kickstart growth.

The Hang Seng Index dropped 0.8 percent, or 131 points, to 15,746, having closed after half a day's trade.

Mainland markets were closed for the holiday. (Additional reporting by AFP)