China's Economic Dance: Tech Triumphs Amid Economic Slowdown

China's economic growth slowed in the second quarter, but a tech rally in Hong Kong driven by Nvidia's chip sales to China provided a lift. Despite a property downturn, the GDP grew 5.2%, slightly exceeding expectations. Tech giants like Alibaba and Tencent saw gains, boosting sector sentiment.

In a mixed session for Chinese markets, mainland stocks showed little movement amid indications of slowing economic growth. China's second-quarter GDP expanded by 5.2%, a slight deceleration from the previous period but marginally above analyst predictions.

While economic data suggested a moderately slower pace, Hong Kong's Hang Seng Index saw a surge, boosted by a resumption of Nvidia's chip sales to China, which reinvigorated the tech sector. Major companies such as Alibaba and Tencent experienced significant gains.

Despite global trade tensions, China's export resilience has so far mitigated fears of a sharper economic deceleration. However, the property sector remains a concern, with declining investment continuing to weigh on growth. Experts note the need for improvement in key areas like consumption and housing.

(With inputs from agencies.)