Hong Kong stocks ended little changed on Wednesday as firmer business activity data steadied sentiment, with the city's private sector expanding for a sixth straight month in January.

The Hang Seng Index rose 12.55 points to end little changed at 26,847.32, while the Hang Seng China Enterprises Index slipped 4.73 points to finish marginally lower at 9,048.38.

The seasonally adjusted Hong Kong SAR Purchasing Managers' Index climbed to 52.3 from 51.9 in December, signalling a faster pace of growth in operating conditions, according to S&P Global.

Separately, analysts at Morgan Stanley said the likelihood of a broad value-added tax increase on the private sector was low, lending additional support to sentiment, the South China Morning Post reported.

The view followed the Chinese authorities' recent move to raise the VAT rate on basic telecommunications services to 9% from 6%, which had sparked broader concerns about potential tax changes across the digital economy.

In corporate news, Qingdao Gon Technology (HKG:2768, SHE:002768) debuted in Hong Kong, closing nearly 12% higher at HK$40.16 compared with its offer price of HK$36.

Meanwhile, CK Hutchison (HKG:0001) gained 2% after its unit initiated international arbitration proceedings against Panama following a court ruling that annulled its licences to operate two Panama Canal ports.