Market Volatility Prevails Amid Potential US-Iran Peace Talks

Mainland China stocks saw declines, while Hong Kong shares registered slight gains on Tuesday. Investors closely monitored possible US-Iran peace talks, anticipated to ease Middle East tensions and the global energy supply shock.

The Shanghai Composite Index dropped 0.24%, with the CSI300 Index down 0.35%. Artificial intelligence shares were significant laggards, with the sector index falling 2.42% by midday. Hong Kong's Hang Seng Index edged up 0.13%, though tech stocks dipped 0.74%.

Morgan Stanley analysts projected a 5-10% upside for Chinese equities by year-end but cautioned about high near-term volatility. In other news, Victory Giant Technology saw its shares surge 60% in a triumphant Hong Kong debut, and Cathay Pacific aims to raise HK$2 billion through bond issuance.