Hong Kong stocks fell 2.05 percent Monday amid fears of tightening moves by central banks in the region following India's surprise rate hike. The benchmark Hang Seng Index tumbled 437.57 points to 20,933.25. Turnover was 55.52 billion Hong Kong dollars (7.15 billion US). India's decision Friday to raise both its key lending and borrowing rates by 25 basis points ahead of a scheduled policy meeting caught markets by surprise, dealers said. In particular, the move roiled Hong Kong's interest-rate sensitive property companies, as it stoked concerns about further monetary tightening from China. 'Interest rate concerns may affect trading sentiment in the near term, especially as local property stocks have been the major leading sector for the Hang Seng Index's latest rally,' Linus Yip, a strategist at First Shanghai Securities in Hong Kong told Dow Jones Newswires. Property companies were also hit by Beijing's pledge to limit state-owned firms' participation in property development to tame land costs. China on Thursday ordered 78 state-owned companies, whose core businesses were not related to the property market, to stop investing in real estate amid concerns a damaging bubble is forming in the sector. Among property firms, Hang Lung Properties fell 4.6 percent to 30.35 Hong Kong dollars, China Overseas Land dropped 3.8 percent to 16.32, Sino Land shed 3.2 percent to 14.54 and Henderson Land fell 2.9 percent to 54.70. Concerns about Greece's debt woes also continued to hang over the benchmark share index. Tensions between Germany and other EU countries over how to handle Greece's debt crisis and the bloc's wider economic strains were growing ahead of the EU's two- day summit in Brussels on Thursday and Friday. Chinese shares closed up 0.22 percent led by airline stocks after Air China announced it would raise its stake in Shenzhen Airlines to 51 percent. The Shanghai Composite Index, which covers both A and B shares, was up 6.83 points at 3,074.58 on turnover of 113.4 billion yuan (16.6 billion dollars). Air China rose 1.87 percent to 12.55 yuan after announcing it would buy a majority stake in Shenzhen Airlines, raising its share in the smaller airline from 25 to 51 percent. China Eastern gained 3.42 percent at 7.56 yuan and China Southern increased by 0.28 percent to 7.22 yuan. Analysts said they did not expect any surprises in trading on Tuesday. 'The index will likely stay in a narrow range, as investors continue to look for clues on (potential) yuan revaluation,' said Xu Yinhui, an analyst at Guotai Junan Securities. 