HONG KONG: China stocks declined while Hong Kong shares were flat on Wednesday as a global bond selloff and rising oil prices took a toll on investor sentiment.
At the close, China’s blue-chip CSI 300 Index declined 1.7 percent, while the Shanghai Composite Index lost 1.2 percent.
Hong Kong benchmark Hang Seng was largely flat.
The declines tracked overnight losses on Wall Street as a global bond selloff deepened, with 10-year US Treasury yield hitting its highest since 2023 on Wednesday.
Investors increased their bets on a September US interest rate hike as rising hostilities in the Middle East drove up oil prices.
AI-related and supply chain stocks dropped the most, with market leader Zhongji Innolight dropping 4 percent in A-shares and Hong Kong each.
Auto shares went down 2 percent as China unveiled guidelines for fair overseas competition.
Hong Kong’s Hang Seng Tech Index fell 0.7 percent. But property and biotech shares gained.
Online fast-fashion retailer Shein’s weak performance in Hong Kong also dragged down sentiment. It declined 5 percent further after a lacklustre debut in the previous session following a long-awaited initial public offering.
The market clearly values AI firms more now, and Shein’s case is more challenging because of growing concern over tariffs on small packages,” said Gary Ng, senior Asia-Pacific economist at Natixis.
The smaller Shenzhen index was down 1.45 percent, the start-up board ChiNext Composite index was weaker by 2.39 percent and Shanghai’s tech-focused STAR50 index was down 1.82 percent.
On geopolitical front, Premier Li Qiang said US firms are welcome to seize opportunities and expand and deepen their presence in the Chinese market, during a meeting with a delegation of the US-China Business Council in Beijing.
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