SHANGHAI: Chinese stocks ended slightly lower on Wednesday amid a sell-off in semiconductor shares, as investors locked in recent gains and shifted capital into traditional sectors despite a weaker-than-expected second-quarter GDP reading.
Hong Kong shares ended at a one-month high.
China’s blue-chip CSI 300 Index closed 0.2 percent lower, while the Shanghai Composite Index lost 0.3 percent. Hong Kong benchmark Hang Seng rose 1.4 percent.
China’s annual economic growth slowed to 4.3 percent in the second quarter, missing analysts’ expectations as weak domestic demand and the oil shock tied to the Iran war outweighed stronger production and exports.
A growing divergence has emerged in China’s onshore market in recent months, with traditional sectors such as consumer and financials moving inversely to AI-focused chip supply chain stocks.
China’s tech-focused STAR50 Index fell 4.3 percent, as investors took profits ahead of Asia’s largest IPO so far this year.
ChangXin Memory Technologies (CXMT) expects to raise about 57.9 billion yuan (USD8.55 billion) before any over-allotment option in its IPO in Shanghai.
Onshore consumer staples shares climbed 3.7 percent after data showed retail sales grew 1 percent in June. Property shares jumped 4.1 percent.
Hong Kong-listed tech giants rose 1.3 percent, helping propel the Hang Seng Index to its highest level in a month.
European investors remain firmly interested in Chinese equities, with AI still the dominant theme despite recent volatility and a wave of profit-taking that has driven a de-rating in the sector, UBS strategists said in a note.
Investor focus has narrowed to companies benefiting from China’s push to localise its tech supply chain and ramp up domestic capital expenditure, as well as segment leaders offering reasonable valuations, they said.