Hong Kong shares remained in the negative territory for the third straight day following after poor demand at a US Treasury auction boosted bond yields, while investors await China's manufacturing PMI data.

The Hang Seng Index fell by 1.34%, or 246.82 points, to close Thursday's session at 18,230.19. The Hang Seng China Enterprises Index fell by 1.44%, or 94.53 points, to close Thursday's session at 6,462.95.

Net retail fund inflows to Hong Kong rose to a three-year record high of $3.8 billion in the first quarter compared with a net outflow of $2.1 billion in the fourth quarter of 2023, according to data from the Hong Kong Investment Funds Association released Wednesday.

In corporate news, Water Oasis Group's (HKG:1161) attributable profit fell to HK$40.1 million, or HK$0.059 per share, in the half-year ended March 31, from HK$57.2 million, or HK$0.084 per share, in the year-ago period. The company's share fell over 10% at Thursday's close.

The Hong Kong High Court granted a validation order in a winding-up petition filed against Dexin China Holdings (HKG:2019), raising the company's shares by over 12%.

MMG (HKG:1208) further specified the pricing policy for crude cobalt hydroxide concentrate sold by its unit MMG Kinsevere SARL to CMN group. The company's share fell nearly 8% at Thursday's close.