China, HK stocks track Asia lower on Mideast, inflation concerns

China and Hong Kong stocks fell ​on Wednesday, tracking broad declines ​across Asia on heightened Middle ‌East tensions ​and inflation concerns. ** China's blue-chip CSI300 Index edged down 0.3% by the lunch break, while the Shanghai ‌Composite Index lost 0.5%. Hong Kong benchmark Hang Seng was down 0.6%.

** The CSI New Energy Index rose 1% as stalled U.S.-Iran talks kept oil prices elevated. ** ‌President Donald Trump said the United States may need to strike Iran again ‌but suggested Iran wants a deal to end the war that has roiled markets and sent energy prices soaring.

** Onshore semiconductor shares rallied 3.1%, with Hua Hong Semiconductor Ltd. up 11%, ⁠after Yangtze ​Memory Technologies, the ⁠country's largest domestic flash memory chip maker, submitted its initial public offering tutoring registration report, marking the ⁠official start of its onshore listing process. ** Onshore financial and property shares fell 0.8% and ​2.4%, respectively.

** On the policy front, China left benchmark lending rates unchanged ⁠for the 12th consecutive month in May on Wednesday, in line with market expectations. ** Tech majors ⁠listed ​in Hong Kong were up 0.2%, after having declined 12% this year.

** First-quarter 2026 earnings from internet giants reported over the past week have bolstered ⁠confidence in a valuation re-rating for the MSCI China Index, prompting an upgrade ⁠of the consumer discretionary ⁠sector to neutral from underweight, analysts at JP Morgan said in a note. The investment bank also reiterated their positive view ‌towards ‌China's artificial intelligence sector.

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