China, HK stocks down as annual financial forum offers few surprises

SHANGHAI: China stocks ended slightly higher on Wednesday as top financial regulators at the annual Lujiazui Forum delivered few fresh policy signals. Hong Kong shares fell as geopolitical tensions heightened.

China’s blue-chip CSI300 Index edged up 0.1%, while the Shanghai Composite Index was roughly flat.

Hong Kong’s benchmark index Hang Seng dropped 1.1%.

China’s securities regulator announced plans on Wednesday to establish a new segment on Shanghai’s tech-heavy STAR market to host pre-profit growth companies and support innovation.

The watchdog also said it would support listing of companies with frontier technologies, in sectors such as artificial intelligence and aerospace.

With few policy surprises from the forum, investors turned their focus to the upcoming July Politburo meeting for clearer signals on economic support.

Tech shares rose as investors drew inspiration from regulators’ support toward the sector.

Electronics, communications and AI shares led market gains.

liquor shares rebounded for the third straight session, after tumbling to their lowest level since September 2024, hit by news that some of China’s civil servants were banned from dining out in groups of more than three.

Risk sentiment remained fragile on Wednesday as Iran and Israel launched fresh missile strikes at each other, extending their air war into a sixth day.

Hong Kong shares of Chinese electric vehicle (EV) maker Li Auto fell nearly 5% to their lowest since May 9.

Tech majors listed in Hong Kong dropped 1.5%, tracking overnight losses in their US-listed counterparts during the New York session.