China stocks slumped for a fourth day on Tuesday morning, extending the steepest rout since 2007, as investors have yet to take notice of any supporting measures by the government to rescue the sinking market, but Hong Kong stocks climbed on bargain-hunting given the its script had fallen more than 20 per cent since April. There are signs though of stabilisation in the A share market in China, underscored by net capital inflows through the Hong Kong-Shanghai stock connect. Foreign investors have purchased net 3.69 billion yuan worth of shares in the A-share market in the morning, while mainland investors pulled HK$388 million from the Hong Kong market, according to the city’s stock bourse. The Shanghai Composite Index fell 4.33 per cent, or 138.85 points, to 3,071.06 by the midday break, while the CSI 300 Index shed 3.9 per cent, or 127.77 points, to 3,147.76. At one point, Shanghai was down over 6 per cent in early trade. Watch: Shanghai shares plunge but other Asia Pacifc markets recover Hong Kong’s benchmark Hang Seng Index rose 1.62 per cent, or 344.17 points, to 21,595.74 before the lunch break. “For us, the rout is a buying opportunity, not a market inflection. Globally, the China slowdown is creating headwinds for industrial capital goods and commodities. But we see no shortage of stock-specific investment opportunities in our broader investment universe,” said Mikhail Zverev, head of global equities, Standard Life Investments. Others feel the markets are not entirely out of the woods. In its morning call, ING said: “The global market volatility will persist in coming days and weeks, supported by China growth anxiety and because of rising uncertainty about the Fed lift-off.” Of the 1,095 A shares listed in Shanghai, only 63 stocks rose while 853 companies fell, while for A shares listed in Shenzhen, only 59 stocks were in positive territory before the midsession break and up to 1,318 stocks lost ground. The Shenzhen Composite closed the morning session at 1,791.71, down 4.82 per cent, or 90.74 points. The NASDAQ-style ChiNext Price Index falls 3.9 per cent or 127.77 points to trade at 2,112.73. More liquidity was injected into the system. People’s Bank of China will inject an additional 150 billion yuan worth of liquidity on Tuesday via seven-day reverse repurchase agreements, the official Shanghai Securities News reports, citing traders.