SHANGHAI: China and Hong Kong stocks fell on Tuesday, as a mild rebound in AI hardware shares failed to offset losses elsewhere, with mixed August data pointing to persistently weak domestic demand.
China’s blue-chip CSI300 Index ended 0.7 percent lower, while the Shanghai Composite Index lost 0.5 percent. Hong Kong benchmark Hang Seng was down 1 percent.
China’s industrial output picked up pace in August, though sluggish consumption and a worsening investment slump reinforced concerns over deepening economic imbalances.
Meanwhile, new home prices fell again in August, underscoring persistent weakness in the housing market.
The CSI 300 Financial and Real Estate Index fell around 1 percent each, while consumer staple shares lost 0.6 percent.
“Following weaker-than-expected credit demand, August activity data reinforced our view that a recovery in domestic demand remains elusive,” Barclays analysts said in a note, adding that they maintain their below-consensus 2026 GDP growth forecast of 4.5 percent.
The tech-focused STAR50 Index rose as much as 3 percent, rebounding for the first time in a week from a 4-1/2-month low. The CSI Semiconductor Material and Equipment Thematic Index gained 3.2 percent.
Onshore sentiment has weakened over the past month, after investors took profits from a record-breaking AI-led rally earlier this year. Liquidity has also dried up. Daily turnover of onshore shares hovered near the lowest level since April over the past week.
Tech majors listed in Hong Kong lost 0.6 percent, with Tencent up nearly 2 percent.
Shares of Guangdong Tianyu Semiconductor jumped more than 7 percent on the company’s share buyback plan.
Comments