China's Market Dance: Balancing Growth and Profit-Taking

China and Hong Kong stocks remained steady as investors juggled profit-taking from recent tech rallies with the implications of Beijing's consumption-boosting measures. While mainland and Hong Kong markets saw fluctuations in specific sectors, like artificial intelligence and consumer staples, economists warn of expected moderated growth amid U.S. tariffs.

Investors in China and Hong Kong played a cautious game Wednesday, keeping stocks relatively stable on the heels of recent tech rallies and anticipated economic boosts from Beijing's consumption measures.

The market's atmosphere saw China's blue-chip CSI300 Index holding steady while the Shanghai Composite Index showed a slight dip of 0.1% as Hong Kong's Hang Seng Index inched up 0.2%. Economists forecast a slowing growth trajectory, citing emerging U.S. tariffs and waning policy effects.

Tech sectors experienced shifts; mainland China's AI stocks fell by 1.3% and Hong Kong's tech index declined 0.8%, despite past gains. The tech titan Xiaomi defied the trend, seeing a 1.2% rise in shares attributed to a significant revenue increase in Q4 and optimistic EV delivery targets.

(With inputs from agencies.)