Stock markets in Hong Kong and the mainland stabilized following a hammering on Wednesday after US and Chinese officials were reported to be meeting in Beijing for financial talks.
In Hong Kong, the Hang Seng Index rallied to 15,391 points, ending a four-day losing streak. The main board turnover was about HK$107.4 billion. The HSI at one point jumped more than 300 points but then closed only 114 points higher than the previous close.
In Shanghai, the SSE Composite Index dipped below the 2,800-point bar at one point before rebounding to end 0.43 percent higher at 2,845.
And Shenzhen's SZSE Component Index climbed by 1 percent to 8,847 points.
Hong Kong and the mainland have in recent months been the worst performers among markets.
On Wednesday, the HSI lost about 600 points due to China's weak economic data and warnings from global central bankers on interest rates.
Nicolas Aguzin, chief executive of Hong Kong Exchanges and Clearing (0388), said the local bourse is nearing a "capitulation point."
The bourse chief said investors are losing confidence in the Hong Kong markets due to factors including interest rate hikes, rising geopolitical tensions and China's economic slowdown.
Meanwhile, officials from the US Treasury held meeting with their Chinese counterparts in Beijing.
Vice Premier He Lifeng met US former Secretary of the Treasury Timothy Geithner and they exchanged views on Sino-US relations, China's economy and capital markets.
Yesterday in Hong Kong saw local developers soaking up the news the SAR will not introduce a capital gains tax.
New World Development (0017) advanced over 4 percent, but Sun Hung Kai Properties (0016) inched down by 0.07 percent even though the Kwok family trust increased its stake in the builder by 759,5000 million shares for HK$57.1 million on Wednesday.
Tencent (0700) also spent over HK$1 billion to repurchase 3.64 million shares on the same day. The tech giant's shares rose about 1.1 percent.
In money markets, the onshore yuan rallied 20 basis points to 7.1946 per US dollar yesterday.
