Mainland China Stocks Rebound Amidst Market Volatility

Mainland China's stocks bounced back after a sharp drop, with the Shanghai Composite and blue-chip CSI300 indices showing gains. Tech stocks, especially semiconductors, led the recovery. Hong Kong shares, however, continued to drop, influenced by losses in Meituan due to increased competition.

Mainland China's stocks experienced a rebound on Thursday following a stark decline, as investors weighed the longevity of the current rally. Contrastingly, Hong Kong shares continued their descent.

At midday, the Shanghai Composite index showed a modest 0.07% increase to 3,803.08 points, recovering from its largest drop since April. The blue-chip CSI300 index rose by 0.69%. Notably, semiconductor stocks surged, with the sector's sub-index climbing 4.1%.

In a significant move, GF Fund Management lifted investment restrictions on a tech-focused feeder fund, reversing a previous cap that had jittered the markets. This bolstered China's tech stocks, while Hong Kong's Hang Seng Index declined due to Meituan's profit fall in a competitive environment.

(With inputs from agencies.)