SHANGHAI: Hong Kong stocks finished higher on Friday after data showed China’s services activity grew for a fourth consecutive month in April, while mainland China shares declined, dragged down by artificial intelligence-related companies.
China’s blue-chip CSI300 Index ended 0.3% lower, while the Shanghai Composite Index dropped 0.5%.
Hong Kong’s benchmark Hang Seng Index added 0.5%, while the China Enterprises Index climbed 1.2%.
China’s services activity grew in April, a survey showed on Friday, as businesses continued to benefit from a return to pre-pandemic levels of demand and output, although expansion slowed slightly.
“As China’s economic recovery continues, we expect investor sentiment to gradually improve towards China equity,” said Jian Shi Cortesi, investment director for China at GAM Investments. “Admittedly, there are still a number of uncertainties such as US-China tensions and geopolitical concerns.”
Tech giants listed in Hong Kong advanced 1%, with Alibaba Group Holding Ltd up 1.2% after Bloomberg News reported that the e-commerce’s international online shopping unit is exploring a US listing.
In mainland markets, AI-related stocks fell. Communications equipment shares slumped 2.8%, and AI shares dropped 1.8%.
Real estate developers gained 4.1% amid market expectations of more policy support after a survey showed China’s average daily home sales by floor area were down 22% compared with the May Day holiday period before COVID-19.
The Hang Seng Mainland Properties Index rose 3%.
Mainland financials firms gained 1.3%, with banks up 1.3% and brokers rising 1.6%.
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