Optical, semiconductor stocks lift China A-shares; HK shares dip

** Goldman Sachs analysts said in ​a note on Wednesday that they maintain "overweight" on China A-shares on improving growth outlook ⁠and exposure to hardware AI companies. ** However, it lowered its weight on Hong Kong shares to medium-weight, given ⁠earning ​concerns over companies outside the hard tech area.

​China stocks extended gains on Wednesday, ​boosted by a jump in ‌optical and semiconductor ​stocks on optimism over AI growth. Hong Kong shares dropped as investors sought hardware opportunities elsewhere. ** At the close, China's ‌blue-chip CSI300 Index climbed 0.5% and the Shanghai Composite Index rose 0.2%.

** Hong Kong benchmark Hang Seng was down 1.6%. Hong Kong-listed Chinese internet giants dropped 2.7%. ** Telecommunication and semiconductor shares led ‌gains in mainland A-shares, up 4.9% and 2.6%, respectively.

** Suzhou TFC Optical Communication ‌surged more than 8%, while optical transceiver giant Zhongji Innolight went up 7%, following a strong session by their U.S. peers overnight. ** This week's Computex conference in Taipei has further ignited investor enthusiasm for AI supply ⁠chain.

** ​Meanwhile, China's services activity ⁠expanded at the fastest pace in three months in May, helped by stronger growth in new business and ⁠a rebound in overseas demand, a private-sector survey showed on Wednesday. ** Goldman Sachs analysts said in ​a note on Wednesday that they maintain "overweight" on China A-shares on improving growth outlook ⁠and exposure to hardware AI companies.

** However, it lowered its weight on Hong Kong shares to medium-weight, given ⁠earning ​concerns over companies outside the hard tech area. ** Geopolitical tensions have also put some pressure on the market.

** The U.S. on Tuesday proposed imposing additional duties of 10% ⁠or 12.5% on imports from the 60 economies, including China, after determining their failures to ⁠curb trade in ⁠goods made with forced labor are unreasonable and restrict U.S. commerce. ** The smaller Shenzhen index ended up 0.28% and the startup board ChiNext ‌Composite index ‌climbed 1.655%.