China stocks mixed as tech shares fall

According to Business Recorder, mainland Chinese equities were split on Monday while Hong Kong shares inched higher, as weakness in artificial intelligence and chip stocks weighed on sentiment. At the midday break, the Shanghai Composite gained 0.2% to 3,894.28 points, whereas the CSI300 slipped 0.3%.

Technology names bore the brunt of the selling. The ChiNext Composite fell 0.5%, the STAR50 dropped 0.9%, the CSI AI Index lost 1.2% and the CSI Semiconductor Index shed 0.7%. Banks offered some cushion with a 0.5% gain, while the Hang Seng rose 0.4% and the Hang Seng Tech added 0.2%. Peer Minimax was down 5.6% by noon.

Analysts at Guotai Haitong Securities said investors are backing away from risk and want clearer proof of fundamental improvement. They expect the markets to stay range-bound, and Asian shares broadly slid as oil prices jumped on supply worries. Traders are also bracing for possible US and Japanese rate hikes this week.