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. And instead, they were seeking rebalancing across markets and sectors,” said Melody Lai, an analyst at SPDB International in Hong Kong. “Hong Kong stocks absorbed part of the capital seeking reallocations because of the relatively low valuation and investors’ reassessment of the internet platforms.” Even after the rebound, the Hang Seng Index was valued at just 12.2 times earnings, according to data provider Wind. That compares with a multiple of 25.8 for the S&P 500 and 14.2 for the CSI 300 Index of yuan-denominated stocks.