SHANGHAI: China and Hong Kong stocks closed almost flat on Tuesday as investors remained cautious ahead of China’s May manufacturing data.
China’s blue-chip CSI300 Index and the Shanghai Composite Index were up 0.1%.
Hong Kong’s benchmark Hang Seng Index edged up 0.2%, while the China Enterprises Index gained 0.5%.
China’s factory activity likely contracted further in May, a Reuters poll showed on Monday, adding to pressures facing the world’s second-biggest economy amid an uneven economic recovery from the COVID-19 pandemic. The official manufacturing Purchasing Managers’ Index (PMI) will be released on Wednesday.
“Sentiment around China continues to be bearish ahead of May’s manufacturing PMI due on Wednesday,” UBS analysts wrote in a note.
China stocks end lower as data signals industrial profit slump
Meanwhile, tensions between the world’s two largest economies continued. China has declined a request by the United States for a meeting between their defense chiefs at an annual security forum in Singapore this weekend, media reported on Monday, a new sign of strain between the powers.
Despite the overall subdued sentiment, artificial intelligence shares jumped 3.2%.
Some AI companies’ stocks soared on the brain-computer interface concept, with Innovative Medical Management Co Ltd and Jiangsu Apon Medical Technology Co Ltd surging 10.0% and 20.0%, respectively.
Stocks of state-owned enterprises (SOEs) regained popularity among investors. CRRC Corp Ltd, the rolling stock manufacturer giant, rose as much as 10%.
Tech stocks traded in Hong Kong gained 1.5% by market close, with Alibaba and Tencent up 1.3% and 1%, respectively.
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