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

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 ‌midday break, China's blue-chip CSI300 Index climbed 1.6% and the Shanghai Composite Index rose 0.6%. ** Hong Kong benchmark Hang Seng was down 1.7%. Hong Kong-listed Chinese internet ‌giants dropped 2.4%.

** Telecommunication and semiconductor shares led gains in mainland A-shares, ‌up more than 8.2% and 4.9%, respectively. ** Suzhou TFC Optical Communication and optical transceiver giant Zhongji Innolight surged more than 10%, 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.

** The smaller Shenzhen index was up ⁠1.38%, the startup ⁠board ChiNext Composite index was higher by 3.97% and Shanghai's tech-focused STAR50 index was up 4.78%. ** MSCI's Asia ex-Japan stock ‌index was firmer ‌by 0.17%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)