China, HK stocks steady as AI hardware bounce counters weak data

Business Recorder, citing Reuters, reported that mainland Chinese and Hong Kong shares were broadly unchanged on Tuesday. A slight recovery in AI hardware stocks was not enough to cover losses in other sectors, while mixed August data showed domestic demand still struggling. By the lunch break the CSI300 was flat, the Shanghai Composite had shed 0.1% and the Hang Seng had dropped 0.2%.

Industrial output accelerated in August, yet weak consumption and a deeper investment decline added to worries about economic imbalances. New home prices dropped again during the month, pointing to continued weakness in the housing market. The CSI 300 financial and real estate gauge lost close to 1%, while consumer staples were unchanged.

Barclays analysts wrote that the August activity numbers, following softer credit demand, confirmed their view that domestic demand has yet to recover. They kept their outlook for 4.5% GDP growth in 2026, which sits below the consensus. Sentiment onshore has soured since investors booked gains after a record AI-driven run earlier this year, and trading volumes have shrunk to their lowest since April. Elsewhere, the STAR50 jumped as much as 3%, posting its first gain in a week, bouncing off a 4-1/2-month low while Tencent gained almost 3% and Guangdong Tianyu Semiconductor surged over 8% after announcing a share buyback plan.