(Updates to market close)
By Summer Zhen
HONG KONG, April 28 (Reuters) - China and Hong Kong stocks fell on Tuesday as the artificial intelligence-led rally took a breather, leaving investors scouring for fresh catalysts to sustain the upward momentum.
By the close, China’s blue-chip CSI300 Index (.CSI300) was down 0.3%, while the Shanghai Composite Index (.SSEC) traded 0.2% lower.
Hong Kong’s Hang Seng Index (.HSI) lost 0.95%.
Some AI-related stocks led the losses. In Hong Kong, large language model upstarts Knowledge Atlas (2513.HK) and Minimax (0100.HK) retreated 13% and 4%, respectively.
Hong Kong-listed Chinese internet majors (.HSTECH) fell 2.3%. The sub-sector is down more than 12% so far this year.
In mainland A-shares, cloud computing (.CSI931469) and software (.CSI932094) sectors led the decline, while semiconductors (.CSI931865) closed slightly higher.
Analysts said investors are taking a wait-and-see approach as they digest a flurry of first-quarter earnings by Chinese tech companies, as well as taking light positions ahead of the five-day Labour Day holiday starting on May 1.
Market focus has shifted from recovery of liquidity to earnings, Nanhua Futures 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 the U.S., they added.
On the policy front, China’s top leadership on Tuesday indicated that they will keep the market liquidity sufficient as they reiterated China’s “proactive” fiscal stance and “appropriately loose” monetary policy.
Also weighing on 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.
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.

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Reuters

MINIMAX-W

CSI 300

Hang Seng Index

KNOWLEDGE ATLAS

Hang Seng TECH Index

NANHUA FUTURES

Bank of America

Meta Platforms

CATL

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH INT NON CUM PFD QQ

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

BANK OF AMERICA CORPORATION 7.25% NON-CUM PERP CONV PFD SER L

BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

CATL HK SDR 30to1

China and Hong Kong stocks drop as markets struggle for direction