China stocks edge higher on AI optimism; HK down on tech drag

China stocks edged higher on Thursday, supported by ​optimism over artificial intelligence after Chinese Premier ​Li Qiang called for broader technological innovation ‌and ​AI adoption, while tech shares weighed on Hong Kong markets. ** China's blue-chip CSI300 Index nudged 0.2% higher by the lunch break, while ‌the Shanghai Composite Index edged up 0.1%. Hong Kong's benchmark Hang Seng was down nearly 1%.

** Onshore artificial intelligence stocks climbed roughly 1% after Li, China's second-ranking official, said on Wednesday that the country should better ‌coordinate power and computing resources to advance AI. ** Market sentiment was also supported by news ‌that Chinese AI start-up Zhipu AI released its latest AI model, and ByteDance is also developing an AI chip.

** Shares of Zhipu AI jumped nearly 25% to a fresh high since market debut on January 8. ** However, tech majors ⁠traded in ​Hong Kong fell nearly 2%, ⁠dragging performance offshore.

** The tech shares have underperformed since late last year, but analysts at CMS Securities said the ⁠slide reflected a sharp liquidity shock rather than a shift in fundamentals. With the peak of overseas liquidity ​stress seen as having passed, they viewed buying the dip as a viable strategy. ** Most ⁠of China's 33 stocks, which are to be added to the MSCI China A Index series, climbed on expectations of ⁠fresh money ​inflows.

** Shares of Chinese chipmaker Wingtech slumped 4% to a nearly six-month low after a Dutch court ordered probe into alleged mismanagement at its unit Nexperia and as rating agency CCXI ⁠downgraded Wingtech's credit rating. ** China Vanke's Hong Kong shares jumped as much as 8% after media reported ⁠Shenzhen government drafted ⁠an 80-billion-yuan rescue package for the developer.

** Auto shares traded onshore and offshore rose 0.5% each after China released guidelines for the industry, aimed at regulating ‌pricing behaviour, ‌curbing price wars and preventing unfair competition.