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Hong Kong stocks closed 0.13 percent higher on Tuesday as bargain-hunters moved in after two successive sessions of losses that saw almost three percent wiped off the market.
The benchmark Hang Seng Index rose 28.63 points to 22,712.78 on turnover of HK$61.75 billion ($7.97 billion).
Dealers took the opportunity to pick up cheaper stocks after suffering a sell-off on Friday and Monday, tracking losses in Shanghai that were fuelled by concerns over a share glut and the economy.
The two indexes fell as several companies have released prospectuses for initial public offerings (IPOs) after the market regulator lifted a freeze on listings. The move comes as there are already worries about a cash crunch in the Chinese financial system.
Energy giant CNOOC fell 1.30 percent to HK$13.66, Ping An Insurance slipped 1.12 percent to HK$66.00 and Sino Land added 0.20 percent to HK$10.18. HSBC put on 0.90 percent to HK$83.90 and Cathay Pacific gained 1.13 percent to HK$16.10.
Chinese shares closed flat. The benchmark Shanghai Composite Index edged up 0.08 percent, or 1.61 points, to 2,047.32 on turnover of 54.6 billion yuan ($9.0 billion).
"The market had basically digested the short-term impact from the resumption of IPOs but it lacked upward momentum given the domestic economy is in a downturn," Central China Securities analyst Zhang Gang told AFP.
BesTV New Media, which is planning a games joint venture with Microsoft, surged 8.37 percent to 40.28 yuan after China took steps to lift a ban on production and sales of game consoles.
Other media firms also advanced, with Zhejiang Daily Media Group gaining 3.20 percent to 32.23 yuan while Time Publishing and Media rose 2.10 percent to 17.52 yuan.
Banks were lower on reports that China has issued rules to regulate shadow banking services.
China Construction Bank fell 1.72 percent to 4.01 yuan while China Minsheng Banking Corp. slid 1.08 percent to 7.31 yuan.