China and Hong Kong Stocks Edge Up as Financial Gains Offset Tech Losses

SHANGHAI, - China and Hong Kong shares rose slightly on Thursday, as gains in brokers, banks, and real estate shares offset declines in technology and chipmakers.

China's blue-chip CSI300 Index climbed 0.3% by the lunch break, while the Shanghai Composite Index gained 0.4%. Hong Kong's benchmark Hang Seng was up 0.1%.

Shares in onshore brokerages rose as much as 2% after China International Capital Corp announced it would acquire two rivals, stoking expectations of further consolidation in the country's $1.6 trillion securities industry.

Meanwhile, the CSI Bank Index gained 1.8%, while the Liquor Index was up nearly 1%. Tech majors traded in Hong Kong fell 1.1%, tracking an overnight drop in their counterparts traded in New York.

Onshore AI shares opened higher before reversing the gains, despite Nvidia CEO Jensen Huang's reassurances on Wednesday that concerns about an AI bubble were unfounded. The company also surprised Wall Street with accelerating growth after several quarters of slowing sales. Semiconductor shares were down 0.8%.

The CSI 300 Real Estate Index rose 3.6% after media reported that China is considering fresh property stimulus measures, such as mortgage subsidies.

China's onshore shares are currently locked in a near-term tug-of-war around the 4,000 level. A firmer U.S. dollar index is weighing on tech valuations, while profit-taking, softer-than-expected tech earnings, and elevated position concentration are adding internal pressure, according to analysts at China Fortune Securities.

The Shanghai Composite Index is up 18% so far this year, trading at 3,962 points. China left benchmark lending rates unchanged on Thursday for the sixth consecutive month in November, in line with market expectations.

Wingtech shares jumped as much as 5% after the Dutch government stepped back from taking control of chip maker Nexperia, a Wingtech unit.