China stocks rebound but fall for second week; Hong Kong shares up

China stocks bounced on Friday but ​logged a second consecutive week of ​declines 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 ended the session up 1.3%, ‌but was down 0.3% for the week. ** The Shanghai Composite Index, which on Thursday logged its biggest drop since March, rebounded 0.9%. ** In Hong Kong, benchmark Hang Seng advanced nearly 1%, led by ‌tech shares as Lenovo surged 20% to its highest level in 26 years. ** China stocks ‌have been climbing this year as AI-led optimism helps 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 Sachs 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 added that "there have been some encouraging signs from the property market in top-tier cities." ** ⁠Tech shares rebounded ⁠sharply from Thursday's fall.

** Shenzhen start-up board ChiNext and the CSI Electronics Index jumped. ** In Hong Kong, the Hang Seng Tech Index climbed, while ‌an index tracking ‌chipmakers jumped.