Hong Kong stocks erase losses on fund, rating shift while Black Sesame sinks in IPO debut

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The Hang Seng Index erased earlier losses amid risk aversion across the region as US tech stocks declined overnight

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A man walks past a screen showing stock indexes and prices outside the Exchange Square in Central. Photo: Sun Yeung

Zhang Shidongin Shanghai

Published: 10:44am, 8 Aug 2024Updated: 5:11pm, 8 Aug 2024

Hong Kong stocks erased losses to chart a second day of gains on speculation global funds are shifting their money to undervalued Chinese companies amid wild swings in global financial markets. Analysts at BCA Research upgraded their rating on Chinese equities.

The Hang Seng Index gained 0.1 per cent to 16,891.83 at the close, extending a 1.4 per cent gain on Wednesday. The Tech Index dropped 0.5 per cent and the Shanghai Composite Index was unchanged.

Japan’s Nikkei 225 fell 0.7 per cent in volatile trading, while South Korea’s Kospi declined 0.5 per cent and Australia’s S&P/ASX 200 slipped 0.2 per cent, tracking overnight losses in US stocks.

Social-media giant Tencent rallied 1.3 per cent to HK$368.20 and China Merchants Bank added 1.1 per cent to HK$31.90, while Alibaba Group Holding strengthened 0.1 per cent to HK$76.55. Limiting the advance, gold miner Zijin Mining slid 0.8 per cent to HK$14.94 after China’s central bank held off bullion purchases for a third consecutive month in July.

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