China stocks steady, Hong Kong shares rise after Wall Street's gains

Business Recorder reported, citing Reuters, that China's stocks were little changed on Friday as property shares rose and offset falls in biotech and chipmaking stocks. The Shanghai Composite Index edged up 0.1%, while the large-cap CSI300 Index slipped 0.1%. In Hong Kong, the Hang Seng Index climbed 0.5% after Wall Street's overnight gains.

Morgan Stanley said China's A-share sentiment had softened as US bond yields rose, but it still sees room for better market conditions as a large liquidity overhang fades and AI trades regain momentum. Worries about liquidity being drained by recent large IPOs, including chipmaker CXMT's share sale, have also weighed on sentiment. Overnight, the tech-heavy Nasdaq outperformed after Nvidia's strong revenue forecast, yet China's chip stocks slipped on Friday, reversing a mid-week rise, and Chinese biotech names were among the largest decliners.

Property stocks rose despite signs of further weakness in the sector. Morgan Stanley said the long property slump remains a central factor behind China's uneven recovery, and a weaker growth reading could raise the odds of more policy support this fall. The bank added that an equity rebound is possible if the trend is confirmed. In Hong Kong, materials, media and IT shares were the strongest performers, while semiconductor and shipping stocks led the decliners.