Amid AI tumult, more Chinese investors seek haven in undervalued Hang Seng Index

Mainland Chinese investors bought more Hong Kong stocks than they sold for a second consecutive month in July, rotating into the undervalued market to take shelter from the tumult in artificial intelligence-linked shares. A faltering in the global artificial intelligence trade pummelled the mainland’s yuan-denominated stocks, particularly technology companies, over the past month, prompting investors to seek alternative assets that could relatively withstand the turmoil. The Hang Seng Index is among the cheapest key equity benchmarks globally, partly because of its low exposure to the AI frenzy. The city’s benchmark rose 13 per cent in July, defying sell-offs that roiled…