Stocks on the mainland declined while Hong Kong shares were flat on Wednesday as a global bond selloff and rising oil prices took a toll on investor sentiment.

At the close, China's blue-chip CSI 300 Index declined 1.7 percent, while the Shanghai Composite Index lost 1.2 percent.

The Shenzhen index finished down 1.45 percent.

In Hong Kong, the Hang Seng Index was largely flat.

The Hang Seng Tech Index fell 0.7 percent, but property and biotech shares gained.

Online ⁠fast-fashion retailer Shein's weak performance in Hong Kong also dragged down sentiment.

It declined five percent further after a lacklustre debut in the previous session following a long-awaited initial public offering.

The declines tracked overnight losses on Wall Street as a global bond selloff deepened, with 10-year US Treasury yield hitting its highest since 2023 on Wednesday.

Investors increased their bets on ⁠a September US interest rate hike as rising hostilities ⁠in the Middle East drove up oil prices.

AI-related and supply chain stocks dropped the most, with market leader Zhongji Innolight dropping four percent in ⁠A-shares and Hong Kong each.

"The market clearly values AI firms more now, and Shein's case is more challenging because of growing concern over tariffs on small packages," said Gary Ng, senior Asia-Pacific economist at Natixis. (Reuters)



Edited by Tony Sabine