[ad_1]
SHANGHAI: China and Hong Kong stocks fell on Friday, led by artificial intelligence (AI) and tech stocks, as China’s uneven economic recovery kept market sentiment subdued.
** China’s blue-chip CSI300 Index dropped 1.0% by the lunch break, while the Shanghai Composite Index lost 1.1%.
** Meanwhile, Hong Kong’s benchmark Hang Seng Index was down 0.6%, while the China Enterprises Index slipped 0.8%.
** AI and information technology shares led Friday’s decline, with the CSI AI and Info Tech indexes down 5.4% and 4.5%, respectively.
** IFLYTEK Co Ltd slumped 7.2% and All Winner Technology Co Ltd tumbled 14.9%.
** Brokers have said the market hype over AI themes may soon end.
** Meanwhile, broad sentiment remained subdued as market participants closely monitored the progress of China’s economic recovery.
China, HK stocks mixed on growth data
** “Investor sentiment edged down as debate over the sustainability of fundamental recovery continues despite the strong macro data,” said Morgan Stanley analysts, suggesting investors to watch May Golden Week data.
** Despite raising full-year China growth forecast to 5.9% from 5.3%, Nomura chief China economist Ting Lu said in a note that they remain cautious on the second half of 2023 and 2024, when the sweet spot of post-pandemic pent-up consumption demand will be over.
** In Hong Kong, tech shares fell 1.8%, tracking Wall Street’s losses as earnings disappointment as well as looming US debt ceiling fight started to worry investors.
** Meanwhile, US Treasury Secretary Janet Yellen said on Thursday the country seeks “constructive and fair” economic ties with China, but will protect its national security interests and push back against Chinese actions to dominate foreign competitors.
[ad_2]
Source link