China, HK stocks fall; chip gains fail to offset broader losses

Hua Hong Grace Semiconductor

28/05/2026 05:42

SHANGHAI, May 28 (Reuters) - Chinese and Hong Kong stocks declined on Thursday, as weakness across the financial, consumer and property sectors overshadowed strength in semiconductor and artificial intelligence shares.

** China's blue-chip CSI300 Index .CSI300 dropped 0.6% by the lunch break, while the Shanghai Composite Index .SSEC lost 0.1%. Hong Kong's benchmark Hang Seng .HSI was down 2.3%.   
** Liquor shares .CSI399997, viewed as a bellwether for domestic consumption, fell 2.4%, while the CSI300 Financial Index .CSI300FS lost 1%.
** Semiconductor stocks bucked the downtrend, with the CSI Semiconductor Index .CSIH30184 rising 1.4%. Shares of chip giant Hua Hong 1347.HK jumped more than 10% in Hong Kong.
** China's tech-focused STAR 50 Index .STAR50 climbed 1.3%, extending its year-to-date gains to 37%.
** Investor attention has shifted toward hardware technology sectors seen as representing China's push for advanced productive forces, analysts at Western Securities said.
** As memory chipmaker CXMT moved closer to its initial public offering, investment in AI infrastructure is gaining momentum, they said.
** Tech majors listed in Hong Kong .HSTECH fell 1.5%, as sentiment was weighed down by a sharp fall in profit from e-commerce group PDD Holdings, which sent the company's shares PDD.O in New York down 10% overnight.
** Mainland property developers listed in Hong Kong .HSMPI fell 2.6%, while materials shares .HSCIM slumped 5.5%.
** Hong Kong shares of Chinese EV maker NIO 9866.HK jumped as much as 11% after the company's new SUV model launch.

 (Reporting by Shanghai Newsroom; Editing by Eileen Soreng)
 ((li.gu@tr.com))