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.Onshore traders purchased a total of HK$62.9 billion (US$8.02 billion) worth of Hong Kong stocks through the cross-border Stock Connect programme last month, extending the HK$27.1 billion worth of buying in June, according to data compiled by the Hong Kong exchange. Z.ai, Alibaba Group Holding and NetEase were among the stocks that received the most inflows in July, according to Chinese data provider Wind.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.