Hong Kong stocks ended lower on Tuesday, with the benchmark Hang Seng Index down 0.5 percent at 20,311.

The Shanghai Composite Index finished up 0.6 percent at 3,422, while the Shenzhen Component Index closed 0.8 percent higher at 10,812.

Raymond Yeung, the chief Greater China economist at ANZ Bank, told RTHK that Beijing's announcement of a looser monetary policy on Monday has sent a positive signal to the market.

"Now, the market has been excited in the last 24 hours after the Politburo statement. But obviously, it's just a change of wording that creates a lot of imagination," he said.

"It basically implies that the central bank is willing to cut the interest rate more and to inject liquidity... From now towards the National People's Congress [meeting], the market will be expecting more consumption support in almost every holiday season."

But Yeung said careful timing and execution are important given the ongoing tensions between Beijing and Washington. (Additional reporting by Xinhua)