China, Hong Kong shares gain on tech strength, as investors await Fed

Mainland Chinese and Hong Kong shares edged higher on Wednesday, with technology names providing most of the lift, according to Business Recorder. Investors kept their positions modest while waiting for the Federal Reserve to announce its policy decision later that day. At the midday pause, the Shanghai composite was up 0.6 per cent and the CSI300 blue-chip gauge had added 0.7 per cent.

Tech stocks drove the advance, with the ChiNext Composite rising 2.4 per cent and the STAR50 jumping 4.5 per cent. In Hong Kong, the Hang Seng added only 0.1 per cent while the city's tech names gained 0.9 per cent. Separately, a People's Daily commentary argued that AI should not be a monopoly of major powers and called for the US and China to cooperate on managing its risks.

Attention centred on the Fed, where Chairman Kevin Warsh has been reluctant to signal the rate path. Elevated inflation and oil prices above $100 a barrel leave the outlook fairly clear, and a Reuters poll showed the central bank set to lift rates on Wednesday and deliver at least one more increase before March ends. Commerzbank analysts said the key issue was whether the move would be seen as a limited adjustment or the start of broader tightening. Separately, US Treasury Secretary Scott Bessent said he would meet Vice Premier He Lifeng this weekend, ahead of a Trump and Xi meeting next week.