China stocks close higher on AI optimism, HK down on tech drag

China stocks ended slightly 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 and the Shanghai Composite Index both ‌closed up 0.1%. Hong Kong's benchmark Hang Seng was down nearly 1%. ** Onshore artificial intelligence stocks climbed roughly 2% 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, with ByteDance also developing an AI chip. ** Shares of Zhipu AI jumped nearly 30% to a fresh high since its market debut on January 8.

** However, tech majors traded in Hong Kong fell nearly 1.7%, dragging ⁠performance ​offshore. ** Global tech shares ⁠tumbled last week on fears of AI-driven disruption, sparking a broad selloff that left the Nasdaq down nearly 2%.

** Hong Kong's ⁠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 4.7% to a nearly six-month low after a Dutch court ordered a probe ⁠into alleged mismanagement at its unit Nexperia. ** 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 both edged up after China released guidelines for the industry, aimed ‌at regulating pricing ‌behaviour, curbing price wars.