China stocks mixed as semiconductors drag, Lenovo helps Hong Kong rebound
- China’s blue-chip CSI300 Index was largely flat by the lunch break
HONG KONG: China stocks struggled for direction on Friday as investors booked some profits from hot semiconductors sectors, while Lenovo Group helped Hong Kong shares rise for the first time in four sessions.
China’s blue-chip CSI300 Index was largely flat by the lunch break, while the Shanghai Composite Index edged down 0.4%.
Hong Kong’s benchmark Hang Seng gained 1.1%. Market participants say funds are starting to rotate from hot sectors to underperforming sectors, and the market is likely to continue to fluctuate.
Traditional sectors, including real estate and liquor, outperformed by the midday break, rising 5.6% and 4.6%, respectively. Semiconductor firms, meanwhile, dropped more than 4%.
“We expect market dynamics to turn clearer and smoother around or after the summer, though near-term volatility is likely to persist,” said Morgan Stanley analysts.
Consumption remains subdued in China despite the optimism surrounding semiconductor super cycle, they said.
In Hong Kong, shares of Lenovo, China’s top PC maker, soared more than 20% after US peer Dell jumped 40% in after-hours trading on strong AI demand. Market sentiment was also lifted by an extension of the ceasefire agreement between the US and Iran.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 2.15%.
The smaller Shenzhen index was down 1.02%, the start-up board ChiNext Composite index was weaker by 1.14% and Shanghai’s tech-focused STAR50 index was down 3.63%.