SHANGHAI: China shares rose on Wednesday, buoyed by gains in artificial intelligence (AI)-related firms that continued to lift market sentiment, while Hong Kong equities slipped as investors booked profits on some tech stocks.
Tech stocks dip in HK on profit taking; China shares higher
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China’s blue-chip CSI300 index climbed 0.4% by the lunch break, while the Shanghai Composite Index gained 0.5%. Hong Kong’s benchmark Hang Seng fell 0.3%.
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Chinese tech stocks and AI-related shares led gains onshore, up 1.7% and 1.6%, respectively.
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The case for buying Chinese stocks, particularly tech shares, is improving, perhaps enough to tempt back long-term investors, investment banks said, noting the emergence of AI startup DeepSeek and a meeting between Xi Jinping and business leaders in the sector.
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The Hang Seng Index has surged 14% year-to-date, while the tech index has soared 27%, positioning the Hong Kong market as one of the best performers this year.
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Given the recent surge, selling at the open wouldn’t be unexpected, said Chris Weston, head of research at Pepperstone. However, sentiment towards China’s asset markets is shifting positively, justifying the rally, with any pullbacks likely to be minor, Weston added.
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Alibaba and Baidu shed 1.2% and 2.8%, respectively.
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Meanwhile, chip stocks saw a surge, with China’s largest chipmaker SMIC jumping more than 6% to a record high and Hua Hong Semiconductor soaring nearly 18%.
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China’s new home prices stalled month-on-month in January, official data showed on Wednesday. Onshore property shares gained 0.5%. Reuters
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