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HONG KONG: Hong Kong shares slipped to a three-week low on Monday as China’s local government debt-relief package fell short of investors’ expectations for economic support, while a rally in semiconductor stocks pulled Chinese markets slightly higher.

China’s blue-chip CSI300 Index and the Shanghai Composite Index closed 0.6% and 0.5% higher respectively, led by a 6.8% jump in semiconductor stocks.

Hong Kong’s benchmark Hang Seng Index fell to its lowest since Oct. 18 before steadying around 1.5% lower at close.

Semiconductor shares surged after Reuters reported, citing an unnamed source, that the US had ordered that chipmaking giant TSMC halt shipments of advanced chips to Chinese customers. Investors figured that would encourage authorities to support China’s industry and bought shares in local makers, sending Semiconductor Manufacturing International Corp stock up 4.7% to a record high.

The CSI Semiconductor Index hit a three-year high. Information technology shares advanced 4.8% to their highest level in two-and-a-half years.

Investors have bet that the election of Donald Trump to the US presidency could actually benefit strategic sectors in China by drawing state backing and say China is much better prepared for trade tensions than in 2016.

The mood in Hong Kong was more broadly downbeat. A 10 trillion yuan ($1.4 trillion) debt package announced after market close on Friday promised to ease local government financing strains and stabilise flagging economic growth.

But it contained no direct stimulus, or spending aimed at consumers, which investors have been holding out for since Chinese authorities started stepping up promises in late September to fix the ailing economy.

“I think slowly the market’s just got used to the fact that this is not going to be about consumption,” said Sat Duhra, a portfolio manager at Janus Henderson in Singapore.

The falls were less severe than the selling in US-listed Chinese firms on Friday. However, the Hang Seng now trades about 12% below its early October peak and the Shanghai Composite about 6% beneath its October high.

Analysts say China needs to do much more to meet the Communist leadership’s goal of around 5% gross domestic product growth, as the world’s second-largest economy tackles a property market downturn and weak confidence.

Data over the weekend showed the country’s consumer prices rose at the slowest pace in four months in October while producer price deflation deepened. The CSI consumer staples index fell 0.8% on Monday, while shares of Hong Kong-listed consumer staples firms lost 2.2%.

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