SHANGHAI: China and Hong Kong shares eased on Wednesday as tech stocks lost ground, while a private survey showed China’s services activity grew at the fastest pace in three months in January. China’s blue-chip CSI300 Index slipped 0.2percent by the lunch break, while the Shanghai Composite Index was flat.
Hong Kong’s benchmark Hang Seng was down 0.4percent. The services reading, buoyed by stronger new orders and the quickest hiring since July, contrasted with lingering softness elsewhere in the economy. “The big picture is still that the economy appears to have lost some momentum last month, largely due to domestic weakness in manufacturing and construction,” analysts at Capital Economics said in a note. Onshore artificial intelligence shares fell more than 3percent to a one-month low, following steep losses in US and European equities on fears that advancements in AI could supplant traditional software. The CSI Software Services Index was down 2.6percent.
Tech giants listed in Hong Kong were down 2.2percent. Defensives outperformed. Onshore banking stocks rose nearly 1percent,while consumer staple shares extended gains, up 1.1percent, supported by a rebound in liquor stocks since the end of January. Solar names rallied, with the CSI Solar Power Equipment Index jumping nearly 7percent after local media reported a team linked to Elon Musk recently visited several photovoltaic firms in China. Coal producers also advanced, sending the Coal Index up 6.2percent.