By Reuters Last Updated
Copyright indiatimes
China stocks fell on Friday but were on track to end the week near their highest level in 3-1/2-years, as investor sentiment remained upbeat on growing confidence in the country’s artificial intelligence potential.** China’s blue-chip CSI300 Index was down 0.4% by the lunch break, while the Shanghai Composite Index lost 0.2%. Hong Kong benchmark Hang Seng was down 0.7%.** The CSI300 Index has climbed nearly 2% so far this week, hitting its highest point since February 2022. The Hang Seng Index slipped nearly 1%, but still hovered near its strongest level since July 2021.** Confidence in China’s AI capabilities continued to strengthen this week, driving gains in domestic markets. Shares of tech giant Alibaba soared to a four-year high as the company increasingly prioritizes AI as a central focus alongside its traditional e-commerce business.** Onshore artificial intelligence shares climbed more than 4% this week, after surging nearly 70% year-to-date.** While shares listed in Hong Kong have historically outperformed during U.S. rate-cut cycles, UBS analysts maintained a preference for onshore shares, the so-called A-shares, citing potentially stronger support from domestic retail inflows over foreign institutional participation. Sector-wise, they favour AI-related themes, brokers and high-dividend stocks.** Tech majors listed in Hong Kong were roughly flat this week.** Real estate shares rose as much as 3%, after state media reported several emerging first-tier cities are studying new policy measures for the real estate market.** Hong Kong-listed innovative drug index fell as much as 3%, after U.S. President Donald Trump threatened 100% tariffs on imports of branded pharmaceuticals from October 1.
