SHANGHAI: Hong Kong shares fell on Tuesday, led by technology stocks, as elevated Sino-US tensions dented investor sentiment. China shares were mixed as sustained strength in artificial intelligence-related stocks countered weakness elsewhere.
** China’s blue-chip CSI300 Index was little changed by the lunch break, while the Shanghai Composite Index gained 0.2%.
** Hong Kong’s benchmark Hang Seng Index was down 0.6%, and the China Enterprises Index lost 1.0%.
** China warned US House Speaker Kevin McCarthy on Tuesday not to “repeat disastrous past mistakes” and meet Taiwan President Tsai Ing-wen, who is visiting the United States.
** Meanwhile, US President Joe Biden’s administration said on Monday it could not confirm reports that China was able to collect real-time data from a spy balloon as it flew over sensitive military sites earlier this year, saying analysis was still ongoing.
** Tech stocks in Hong Kong slumped 1.6%, with Alibaba and Meituan down 3.2% and 4.1%, respectively.
** Shares of Chinese electric vehicle makers traded in Hong Kong also plunged, following a drop in Tesla shares in the United States. Shares of Nio and XPeng declined 8.5% and 5.4%, respectively.
** In China, sectoral performances were mixed. Shares of state-owned enterprises and semiconductor companies lent some support to the market, while new energy-related sectors gave up some of their earlier gains.
** The China CSI AI Index jumped 3.6% to a 14-month high.
** Shares of China Railway Group Ltd and China Communications Construction Co Ltd rose 9.5% and 6.5%, respectively.
** Shares of Semiconductor Manufacturing International Corp rallied 5.0% to its highest in more than a year.