Hong Kong shares fell Monday as the ongoing conflict in the Middle East showed no signs of letting up and a closely watched meeting between U.S. President Donald Trump and Chinese President Xi Jinping failed to yield any major trade or geopolitical breakthroughs.

The Hang Seng Index fell by around 287.55 points, or roughly 1.1%, to end at 25,675.18, while the Hang Seng China Enterprises Index decreased by 93.06 points, or also around 1.1%, to close at 8,597.97.

Fresh drone attacks in the Gulf regions pushed oil prices and bond yields higher on Monday, according to a Reuters report. Investor sentiment was further dampened after President Trump warned that the "clock is ticking" before the U.S. launches harder strikes.

Elsewhere, China and the U.S. agreed to establish Trade and Investment Councils, pursue reciprocal tariff reductions, and address non-tariff barriers on agricultural goods. China also pledged to address U.S. concerns on beef plant registrations and poultry exports.

However, despite expectations of China buying "double-digit billions" in U.S. farm goods over three years, no details on products, prices, or volume have been released.

In corporate news, three mainland firms filed to go public in Hong Kong while another made its trading debut.

Chinese AMOLED display designer Viewtrix Technology (HKG:3310) said it was looking to raise HK$1.10 billion via the sale of 52.9 million shares at HK$20.81 apiece. Net proceeds will be used mainly to support the research and development and optimization of AMOLED TDDI chips, the firm said.

Shenzhen SDMC Technology (HKG:0901), a Chinese smart home products provider, said it was targeting HK$630 million via an offer of 19.2 million shares at HK$32.80 apiece. Net proceeds will be used mainly to invest in AI home-related technologies, according to the firm.

Meanwhile, Chinese AI-driven marketing technology company Beijing DeepZero Technology (HKG:2723) is seeking up to HK$503.3 million by going public in Hong Kong. The firm is offering 9.1 million shares at an indicative maximum price of HK$55.50 per share to raise funds for the research and development of its AI-powered marketing and sales application products.

Elsewhere, Robotphoenix Intelligent Technology (HKG:6871) soared in its marketing debut after closing at HK$54.65 per share, 76% higher than the offer price of HK$30.50.