HONG KONG (Reuters) -- Hong Kong stocks closed little changed on Monday as a drop in Chinese PC maker Lenovo after a profit warning by tech bellwether Dell offset gains in blue chips such as Hang Lung Properties Ltd.

Hong Kong's blue-chip Hang Seng Index was up 16.41 points at 16,480.59. Turnover was lighter than recent averages at HK$17.9 billion (U.S.$2.3 billion), compared with HK$20.1 billion on Friday.

Investors are preferring to stay on the sidelines ahead of Hong Kong's corporate earnings season next month and key U.S. GDP data due out later in the week, analysts said.

Hong Kong is sensitive to the U.S. economy, since the city's currency is pegged to the dollar.

"The end of July is typically a quieter period as investors are waiting for the earnings season to begin," said Kenny Tang, associate director at Tung Tai Securities. "But at the same time, there's no fund outflow. People are just waiting for more news before buying back into the market."

Investors are also eyeing China's move to raise commercial banks' reserve requirements on Friday for the second time in five weeks in a bid to cool a racing economy that grew 11.3 percent in the second quarter from a year earlier, analysts said.

The move stoked concerns that China's economy may be overheating, with further tightening measures a possibility.

Personal computer maker Lenovo Group Ltd. fell 2.64 percent to HK$2.58 after Dell issued a profit warning on Friday.

Dell's shares fell to their lowest in nearly five years after the company warned that quarterly earnings would fall short of forecasts due to a slowdown in the computer market.

Dell's warning was most negative to Lenovo, Citigroup analyst Kirk Yang wrote in a report.

"As Lenovo's IBM PC business has the most overlap against Dell, we believe Lenovo will see the most pricing pressure, which makes profitability difficult to maintain," Yang said.

Hang Lung Properties -- the top blue-chip gainer – rose 1.91 percent to HK$14.42. The company said on Friday it would invest 4 billion yuan ($501 million) in developing a commercial complex in the capital of China's southeastern province of Hunan.

TV maker Skyworth Digital Holdings Ltd. jumped 2.27 percent to HK$0.90 after it said on Monday it sold 16.4 percent more television sets in June than in the year-ago period due to a significant jump in sales abroad.

China's top fertiliser company, Sinochem Hong Kong Holdings Ltd., sank 5.39 percent to HK$2.72 on resuming trade on Monday, after it said it would issue HK$1.3 billion (US$166.7 million) in zero coupon bonds due 2011.

Shares in Air China Ltd. fell 1.49 percent to HK$2.98 after it said on Monday it proposed to issue up to 2.7 billion A-shares to institutional and public investors in its mainland listing.