Stocks in Hong Kong and mainland China ended lower on Thursday, with gains in banks and miners across the border outpaced by rising investor concerns over the fiscal health of the world's largest economy.

The benchmark Hang Seng index ended the day down 283.47 points, or 1.19 per cent, at 23,544.31.

The Hang Seng China Enterprises index fell 1.19 per cent to 8,557.64.

Investors turned risk averse after sharp declines on Wall Street and a spike in longer-dated US Treasury yields, while US President Donald Trump tried to push his sweeping spending and tax-cut bill through Congress.

Across the border, the benchmark Shanghai Composite index was down 0.22 per cent at 3,380.19, while the blue-chip CSI300 index was down 0.06 per cent at 3,913.87.

Banks outperformed the market, with the sub-index rising 1 per cent.

China's recent decision to lower key rates, including deposit interest rates at major state-owned lenders, was expected to guide smaller lenders with similar moves to alleviate their shrinking interest margin pressure.

Meanwhile, mining-related shares climbed, as investors rushed to safe-haven assets, such as gold, following mounting concerns over the US government's growing debt. Western Region Gold rose 2.39 per cent at the midday break.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.75 per cent, while Japan's Nikkei index closed down 0.84 per cent.

Wendy Liu, chief China equity strategist at JP Morgan, said she's optimistic about A-shares, despite expecting their peers in Hong Kong to outperform due to higher valuations.

Liu expects the CSI300 index to climb to 4,150 points, or nearly 6 per cent higher than the current level, in the base-case scenario, while hitting 4,420 points as a more positive outcome and 3,800 points in a more bearish case. (Reuters)