China stocks rebound but set for second week of losses; Hong Kong shares up

** In Hong Kong, benchmark Hang Seng advanced 1.2%, led by tech shares as Lenovo ‌surged 16%. ** China stocks have been climbing this year as frenzy toward artificial intelligence helped overcome investor worries about the broader economy.

China stocks bounced on Friday but were on ​track to fall for two weeks ​in a row as soaring tech shares ‌face ​growing profit-taking pressure. The Hong Kong market rose as Lenovo Group's forecast-smashing results boosted sentiment. ** China's blue-chip CSI300 Index climbed 0.7% by the lunch ‌break, but is poised to drop nearly 1% for the week - the worst showing in nearly two months.

** The Shanghai Composite Index, which on Thursday logged its biggest drop since March, rose 0.5% in ‌morning trading. ** In Hong Kong, benchmark Hang Seng advanced 1.2%, led by tech shares as Lenovo ‌surged 16%.

** China stocks have been climbing this year as frenzy toward artificial intelligence helped overcome investor worries about the broader economy. ** BNP Paribas said there's a dramatic improvement in earnings expectations in China and some other Asian economies, but "this is, ⁠however, ​not a broad-based story ⁠but one nearly entirely driven by the tech super-cycle."

** The bank warned that "any reversal of the (tech) cycle will create a ⁠material headwind to regional equities", but "in the near-term, it remains the only story." ** Goldman also painted a picture ​of a bifurcated Chinese economy where the red-hot tech sector contrasts with ailing "old economy" industries.

** "The ongoing ⁠Middle East conflict and higher energy prices have negatively impacted the Chinese economy," Goldman Sachs said in a note. However, "the Chinese ⁠economy ​has so far been more flexible than expected in adapting to higher oil prices." ** The Wall Street bank said investors should closely monitor Chinese exports, which have been a key growth engine. ⁠It also said "there have been some encouraging signs from the property market in top-tier cities."

** Tech shares ⁠rebounded sharply from Thursday's ⁠falls. ** Shenzhen start-up board ChiNext jumped 2% and the CSI Electronics Index gained 2%.

** In Hong Kong, the Hang Seng Tech Index climbed 2% while ‌and an ‌index tracking chipmakers jumped nearly 4%.