China Stocks Rise on AI Surge, While Hong Kong Slips on Profit-Taking
China stocks rise, driven by gains in artificial intelligence (AI)-related firms, while Hong Kong equities dipped as investors locked in profits from recent tech stock rallies.
AI and Tech Stocks Lead Market Gains
China’s blue-chip CSI300 index rose 0.4% by midday, while the Shanghai Composite Index gained 0.5%. In contrast, Hong Kong’s Hang Seng Index dropped 0.3% as investors took profits from recent gains in the tech sector.
AI-related stocks and Chinese tech firms were the strongest performers, with tech stocks rising 1.7% and AI shares up 1.6% on mainland markets. Analysts noted improving conditions for Chinese tech investments, with optimism fueled by the emergence of AI startup DeepSeek and a recent meeting between President Xi Jinping and industry leaders.
China Stocks Rise, Hong Kong Market Sees Mixed Performance
Despite Wednesday’s decline, the Hang Seng Index has surged 14% this year, with the Hang Seng Tech Index soaring 27%, making Hong Kong one of the best-performing global markets in 2024.
Chris Weston, head of research at Pepperstone, suggested that some selling at market open was expected after recent strong gains. However, he noted that sentiment towards China’s markets is shifting positively, making any pullbacks likely to be minor.
Among major tech stocks, Alibaba lost 1.2%, while Baidu fell 2.8%.
Semiconductor Stocks Rally
Semiconductor stocks saw strong gains, as China stocks rise, China’s largest chipmaker, SMIC, jumping over 6% to a record high, while Hua Hong Semiconductor surged nearly 18%.
Meanwhile, China’s new home prices remained flat in January, according to official data. Despite this, onshore property stocks edged higher, with property shares rising 0.5%.
With inputs from Reuters
