SHANGHAI: Chinese stocks ended higher on Wednesday, as the selloff in AI-linked names tapered and investors shifted into consumer-focused sectors.
Hong Kong shares also rose, buoyed by gains in internet platform companies.
China’s blue-chip CSI300 Index ended 0.7 percent higher, while the Shanghai Composite Index rose 0.4 percent. Hong Kong benchmark Hang Seng was up 2 percent.
Leading gains onshore were so-called traditional sectors that have lagged their technology counterparts this year. Real estate stocks jumped 3.7 percent, while consumer staples added 1.3 percent, as investors rotated out of richly valued tech names and into underperforming corners of the market.
Losses in semiconductor stocks narrowed in the afternoon session, helping lift sentiment in onshore markets. The CSI All Share Semiconductor Index fell 1.7 percent, paring earlier declines after shedding nearly 30 percent this month. The tech-focused STAR50 Index slipped 0.9 percent.
The broad AI hardware selloff in Asia came amid a nearly 6 percent decline in South Korea’s chip-heavy KOSPI index after chipmaker SK Hynix’s bumper quarterly results fell short of lofty investor expectations.
However, shares in China’s memory chip giant CXMT bucked the trend, rising 12.7 percent.
Hong Kong-listed internet platform companies ended nearly 3 percent higher, with the Hang Seng Tech Index extending its monthly gain to 10 percent. Tencent and Alibaba shares rose 4.3 percent and 1.4 percent, respectively.
Adding to the pressure, the US administration on Tuesday unveiled bans targeting imports of new Chinese robots and power inverters, seeking to protect the US AI buildout from national security threats and reshore key industries slated for explosive growth.
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