Semiconductors lift China stocks; Hong Kong falls as Alibaba weighs
BABA•China’s CSI300 rose 0.1% and the Shanghai Composite gained 0.2% by midday, while Hong Kong’s Hang Seng fell 0.9%. Alibaba dropped 5% after saying it would proceed with the spin-off of its T-Head chip business.
1. Stocks diverge
Mainland China stocks edged higher on Thursday, led by semiconductor and AI-related shares. The CSI300 rose 0.1% and the Shanghai Composite gained 0.2% by the lunch break; the Shenzhen index was up 0.08%, ChiNext Composite gained 0.06%, and STAR50 rose 2.35%.
2. Hong Kong declines
The Hang Seng fell 0.9%, while the Hang Seng Tech index dropped 1.4%. Alibaba fell 5% after saying it was pushing ahead with the spin-off of its chip business, T-Head. CK Hutchison lost more than 4% after it reportedly paused a planned dual listing of retailer AS Watson Group. Muted expectations for Singles’ Day sales also weighed on sentiment.
3. China outlook
Macquarie Group chief China economist Larry Hu called Chinese equities’ performance “disappointing” so far this year, largely because of a lack of stimulus to support domestic demand. He said export strength going into 2027 would determine how much domestic stimulus Beijing provides to meet its GDP growth target.
