Chinese defy Hong Kong's protest gloom in hunt for bargain stocks

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Chinese investors more than doubled their Hong Kong stocks purchases this year, ...

Mainland investors have been undeterred, though, seeing opportunities to buy on the dip when the overall appetite for risk is dampened and valuations of Hong Kong stocks hover near three-year lows.

China’s No. 2 telecom equipment maker, ZTE Corp, for example, on Wednesday, traded at 31.18 yuan in Shenzhen, while selling at HK$20.9 in Hong Kong, representing a near 40% discount. Among mainland investors’ darlings, Chinese food-delivery giant Meituan Dianping has seen its share price more than double this year, with upward momentum enhanced by its inclusion in the Stock Connect scheme.

 

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