By Summer Zhen
HONG KONG, April 28 (Reuters) - China stocks traded largely flat on Tuesday, while Hong Kong stocks declined as investors await further catalysts amid artificial intelligence optimism.
At the midday break, China’s blue-chip CSI300 Index edged up 0.06%, while the Shanghai Composite Index (.SSEC) was 0.07% lower.
Hong Kong’s Hang Seng Index (.HSI) dropped 0.67%. Hong Kong shares of electric vehicle battery major CATL (3750.HK) lost 6.9% after the firm completed a share placement on Tuesday to raise $5 billion. The shares ​were sold at a 7% discount to Monday’s closing price.
Analysts said investors are taking a wait-and-see approach as they are digesting a flurry of first-quarter earnings releases by Chinese tech companies, as well as taking light positions ahead of the Labour Day five-day holiday starting May 1.
Market focus has shifted from recovery of liquidity to earnings, Nanhua Futures analysts said in a note. “China’s AI adoption has yet to lead to meaningful impact on jobs or earnings,” BofA Securities said in a note on Tuesday. It explains why China’s tech rally lags its peers in Asia and U.S., they added.
Hong Kong-listed Chinese internet majors (.HSTECH) lost 1.2% by midday. The sub-sector is down more than 10% so far this year. Also weighing on the sentiment is China ordering U.S. tech major Meta (META.O) to unwind its acquisition of AI startup Manus, raising concerns over Beijing’s tighter control over Chinese AI talent and technology.
In mainland China, software (.CSI932094) and defence (.CSI399973) stocks led the decline, while real estate (.CSI000952) outperformed. The smaller Shenzhen index (.SZSC) was down 0.54%, the start-up board ChiNext Composite index (.CNT) was weaker by 0.54% and Shanghai’s tech-focused STAR50 index (.STAR50) was down 0.22%​.
Around the region, MSCI’s Asia ex-Japan stock index (.MIAPJ0000PUS) was weaker by 0.22% while Japan’s Nikkei index (.N225) was down 0.92%.

China stocks flat, Hong Kong drops as markets struggle for direction