The Hang Seng Index rebounded 78 points yesterday after suffering the biggest single-day decline in 13 months, but some mainland shares suffered, with developer China Evergrande falling 8 percent.
At the close, the HSI was up 0.28 percent at 28,303. The Hang Seng China Enterprises index fell 0.11 percent to 11,150.
Its top gainer was Hengan International Group (1044), up 3.41 percent to HK$77.50, and Tencent Holdings (0700) which jumped 3.3 percent to close at HK$378.
The biggest loser was Geely Automobile (0175), down 2.79 percent.
So far this year, the HSI is up 28.29 percent, and the H-share index is up 18.8 percent. The HSI has fallen 3.26 percent this month.
Ivan Li Sing-yeung, a research director at DBS Vickers Securitiesm said its new target for HSI is 33,000, equivalent to 13.8 times of full-year 2018 price-to-earnings ratio.
But the falling of yield spreads for the United States two-to-10 year bond may indicate earnings growth will slow down and pose a risk to the market, Li said.
About 1.84 billion Hang Seng Index shares were traded. The volume traded in the previous trading session was 2.69 billion.
At the close, China's A shares were trading at a premium of 34.27 percent over Hong Kong-listed H shares.
The HSI price-to-earnings ratio was 12.88 as of the last full trading day while the dividend yield was 3.1 percent.
Asian markets remained tentative after Wednesday's slump, with MSCI's broadest index of Asia-Pacific shares outside Japan hovering around a near two-month low.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.09 percent while Japan's Nikkei index closed up 1.45 percent.