Hong Kong stocks tumbled by the most in one week after China’s central bank signalled it’s not ready to unleash its full policy easing power to revive a faltering economy. China Merchants Bank sank after removing its top executive without giving a reason. The Hang Seng Index retreated 2.3 per cent to 21,027.76 at the close of Tuesday trading, as the market reopened after a two-day holiday. The Tech Index weakened 3.8 per cent, while the Shanghai Composite Index was little changed. China Merchants Bank led losses as the nation’s biggest retail lender sank 11.5 per cent to HK$52.90, the most in 11 years . Meituan slumped 5.9 per cent to HK$146, while Alibaba Group Holding retreated 4.2 per cent to HK$91.5. Anta Sports and Li Ning both lost at least 5 per cent. The People’s Bank of China issued guidelines late Monday on its approach to support the economy hit by citywide lockdowns in Shanghai and elsewhere, and avoided any mention of reserve requirement ratio. The central bank made a token 25 basis point cut in the ratio on Friday, the smallest reduction in history, according to Goldman Sachs. “Room for further reserve ratio cut is indeed narrowing,” said Nathan Chow, senior economist and strategist at DBS Bank, in a note on Monday. “Subdued loan demand due to regulatory clampdown and pandemic controls are also hindering the efficacy of monetary policy.” Pain for China stock funds, with strategists at Goldman, Credit Suisse confounded by PBOC’s token easing move China Merchants Bank slipped for a second day in Shanghai. The board on Monday removed its president Tian Huiyu without giving a reason. The decision was preceded by a US$11 billion sell-off amid a local news report that an unnamed senior executive was assisting the government with a probe. Elsewhere, Bilibili slid 10.9 per cent while Kuaishou lost 3 per cent. China has been inspecting live-streaming and short-video platforms for two months to root out illegal behaviour, the Cyberspace Administration of China said on Friday. Five mainland companies debuted on Tuesday. Beijing Jingwei Hirain Technology slumped 17 per cent and Shenzhen Injoinic Technology lost 10 per cent. Zhejiang Realsun Chemical surged 31 per cent. Newonder Special Electric Company soared 46 per cent, while Jiangsu Hongde Special Parts Company jumped 26 per cent. Major Asian markets rose on Tuesday, with Japanese and Australian equities gaining more than 0.6 per cent. South Korean stocks gained 1 per cent.