Hong Kong stocks tread water after Hang Seng Index’s biggest advance in 2 weeks

The Hang Seng Index fell 0.1 per cent to 25,600.07 as of 10.03am local time. The Hang Seng Tech Index dropped 0.6 per cent.

On the mainland, the CSI 300 Index slipped 0.1 per cent and the Shanghai Composite Index retreated 0.3 per cent.

Car dealer Zhongsheng Group Holdings advanced 5 per cent to HK$16.78, and household appliances maker Midea Group gained 3.5 per cent to HK$86.95. On the downside, China Unicom slid 3.9 per cent to HK$9.42 and machine tool maker Techtronic Industries lost 2.7 per cent to HK$97.15.

Hong Kong stocks are playing catch-up with their mainland counterparts after a benchmark gauge of onshore stocks rose to its highest level in a decade last month. Expectations that the Federal Reserve will cut borrowing costs later this month have also added impetus to sentiment.