Hong Kong shares ended slightly higher on Wednesday, breaking a six-session losing streak, but persistent concerns over growth and global trade capped gains.
The Hang Seng index rose 0.1 per cent to 26,193.07 points, while the China Enterprises Index gained 0.2 per cent to 10,442.71 points.
U.S. President Donald Trump on Tuesday repeated his threat to impose tariffs on $267 billion worth of additional Chinese imports if China retaliates for the recent levies and other measures the United States has taken in the countries' escalating trade war.
China must take strong stimulus measures to support growth, with the country in a "critical" period of stabilising its economy, according to a commentary in the Global Times, a state-backed Chinese tabloid.
Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said on Wednesday. But the IMF's chief economist said he was not concerned about China's ability to defend its currency.
The sub-index of the Hang Seng tracking energy shares rose 0.4 per cent, while the IT sector dipped 1.63 per cent, the financial sector was 0.17 per cent higher and property sector dipped 0.27 per cent.
Index heavyweight Tencent Holdings Ltd weighed on the tech sector as the company's shares fell to 15-month lows in their ninth straight session of losses, closing down 2.5 per cent.
The top gainer on Hang Seng was China Shenhua Energy Co Ltd, up 4.1 per cent, while the biggest loser was Want Want China Holdings Ltd, which fell 6.86 per cent.
China's main Shanghai Composite index closed up 0.2 per cent at 2,725.84, while the blue-chip CSI300 index ended down 0.22 per cent.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.03 per cent, while Japan's Nikkei index closed up 0.16 per cent.
The yuan was quoted at 6.9192 per U.S. dollar at 08:23 GMT, 0.1 per cent firmer than the previous close of 6.926.
As of the previous trading session, the Hang Seng index was down 12.52 per cent this year, while China's H-share index was down 11.0 per cent. As of the previous close, the Hang Seng has declined 5.81 per cent this month.
The top gainers among H-shares were China Shenhua Energy Co Ltd up 4.1 per cent, followed by ZhongAn Online P & C Insurance Co Ltd, gaining 3.61 per cent and China Mobile Ltd, up by 3 per cent.
The three biggest H-shares percentage decliners were Shenzhou International Group Holdings Ltd, which was down 4.85 per cent, China Gas Holdings Ltd, which fell 3.4 per cent and Tencent Holdings Ltd, down by 2.5 per cent.
About 1.77 billion Hang Seng index shares were traded, roughly the same as the market's 30-day moving average. The volume traded in the previous trading session was 1.80 billion.
At the close, China's A-shares were trading at a premium of 23.22 per cent over the Hong Kong-listed H-shares.
The price-to-earnings ratio of the Hang Seng index was 10.14 as of the last full trading day while the dividend yield was 3.6 per cent.
So far this week, the market capitalisation of the Hang Seng index has fallen by 1.55 per cent to HK$17.06 trillion.
The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was lower by 0.07 per cent on the day at 5,348.05 points.
(With inputs from agencies.)