Nepal has already secured a place for the semi-finals.
Batting first Hong Kong piled up 193 runs for the loss of seven wickets in the allotted 50 overs. Chasing victory Nepal was restricted to 147 runs in 47.4 overs.
Man-of-the-match Irfan Ahmad hammered 103 runs in Hong Kong´s victory. Lal Bahadur Adhikari claimed three wickets for Nepal while Rupesh Srivastav pocketed two wickets and Anil Mandal and Amrit Bhattarai dismissed one batsman each.
Anil Mandal top scored with 29 runs for Nepal while Sagar Khadka (25), skipper Gyanendra Malla (21), Sunny Pun (18), Prithu Baskota (16), Rupesh Srivastav (15), Aakash Gupta (11), Anupam Singh (1), Rom Shrestha (1), and Lal Bahadur Adhikari (5, not out) contributed to the Nepali innings.
Earlier, Nepal had beaten Saudi Arabia by 137 runs in its first match, thrashed Malaysia by six wickets in the second and defeated Singapore by three wickets in the third group match.
Hong Kong, the Pearl of the Orient, will shine again