SHANGHAI: China stocks edged lower from an 11-year high on Tuesday, as investors took profits and turned their focus to a highly anticipated meeting between the world’s two largest economies this week.
Hong Kong shares were also down. China’s blue-chip CSI300 Index ended 0.1percent lower, while the Shanghai Composite Index lost 0.3percent. Hong Kong benchmark Hang Seng was down 0.2percent. US President Donald Trump is set to meet his Chinese counterpart Xi Jinping on May 14-15, the first since they paused a bruising trade war in October. China and the United States should take a long-term view and allow trade to continue serving as “the ballast and propeller” of bilateral relations, while constantly opening up new areas for cooperation, state media said in an editorial on Tuesday.
Consumer staples and rare earth shares fell 1.5percent and 3.2percent, respectively, leading declines onshore. UBS analyst Meng Lei said a recovery in earnings growth and various liquidity support measures will continue to drive onshore shares’ upward momentum.
The Shanghai Composite Index’s breakthrough of a key psychological level of 4200 points is not an endpoint, but rather a step in the market’s ongoing upward trajectory as it breaks through successive resistance levels, Meng said.
Onshore artificial intelligence shares rose 0.8percent against a broad decline. Semiconductor shares extended gains, up 0.5percent, to a record high. Chinese short-video platform Kuaishou Technology’s stock jumped as much as 11percent on a report that the firm plans to spin off Kling AI.
Materials and energy shares rose in Hong Kong, up 1.1percent and 1.4percent, respectively. Tech majors fell 0.7percent.
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