Stocks on the mainland extended gains on Wednesday, boosted by a jump in optical and semiconductor stocks on optimism over AI growth while Hong Kong shares dropped as investors sought hardware opportunities elsewhere.

The benchmark Hang Seng Index ended Wednesday down 1.56 percent to close at 25,633 points.

The Hang Seng China Enterprises Index fell 1.9 percent to end at 8,596 points, and the Hang Seng Tech Index fell 2.74 percent to end at 5,056.97 points.

Optical and semiconductor stocks led the charge on the mainland.

At the close, the blue-chip CSI300 Index climbed 0.5 percent, the Shanghai Composite Index rose 0.2 percent while the Shenzhen bourse ended up 0.28 percent higher.

Telecommunication and semiconductor shares led gains in mainland A-shares, up 4.9 percent and 2.6 percent, respectively.

Suzhou TFC Optical Communication surged more than eight percent, while optical transceiver giant Zhongji Innolight went up seven percent, following a strong session by their US peers overnight.

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, the bank lowered its weight on Hong Kong shares to medium-weight, given earning concerns over companies outside the hard tech area. (Xinhua/Reuters)


Edited by Tony Sabine