The Hang Seng Index rose 0.7 per cent to 16,488.06 at the noon break, offsetting some of the 4.2 per cent loss over the past three days. The Tech Index gained 1.3 per cent and the Shanghai Composite Index fell 0.1 per cent.

This week’s sell-off, however, has pushed the Hang Seng Index’s 14-day relative strength indicator near the 30-point threshold that typically signals the selling is overdone, according to chartists.

UBS, Lazard gear up for China bull market as green shoots emerge in economy

“Gains in stocks still hinge on a re-acceleration of China’s economic growth,” said Zhao Hongmei, an analyst at Zhongtai Securities. “Until the signal emerges, stocks in Hong Kong will continue to consolidate and seek a bottom.”

An official report on Thursday may show that China’s exports stalled in November, after six straight months of contraction. Another report over the weekend may show both consumer and producer prices shrank last month, heightening deflationary pressures.

Two companies made their trading debuts on Wednesday. Animal-feed producer Dekon Food and Agriculture Group added 0.1 per cent over its offer price to HK$37 in Hong Kong while Jiangsu Aisen Semiconductor Material jumped 132 per cent to 65 yuan in Shanghai.

Other major Asian markets also traded higher. Japan’s Nikkei 225 climbed 1.8 per cent, while South Korea’s Kospi rose 0.4 per cent and Australia’s S&P/ASX 200 added 1.7 per cent.