China stocks fall on soft economic data; HK gets tech boost

China stocks fell on Wednesday as data showed country's services activity growth hit an eight-month low in June, while technology companies led Hong Kong shares higher.

China's services activity expanded at slowest pace in eight months and confidence hit a four-year low, mainly due to slower growth in new orders, a private-sector survey showed, suggesting more stimulus is needed to boost economy.

Meanwhile, Hong Kong shares fared better, with Hang Seng Tech Index jumping 2.5 per cent.

Shares of Alibaba Group gained 2.5 per cent after e-commerce giant said it bought back shares worth $5.8 billion in second quarter, its biggest single-quarter stock repurchase ever. Tencent also jumped 2.8 per cent on share buyback efforts.

At close, Shanghai Composite index was down 0.49 per cent at 2,982.38, snapping a three-day winning streak. blue-chip CSI300 index was down 0.24 per cent. financial sector sub-index was lower by 0.43 per cent, consumer staples sector was down 0.1 per cent, real estate index rose 1.11 per cent and healthcare sub-index dropped 0.37 per cent.

smaller Shenzhen index ended down 0.78 per cent and start-up board ChiNext Composite index was weaker by 0.295 per cent.

In Hong Kong, Hang Seng index rose 209.43 points, or 1.18 per cent, to 17,978.57. Hang Seng China Enterprises index rose 1.27 per cent to 6,455.7. sub-index of Hang Seng tracking energy shares rose 0.9 per cent, while IT sector rose 2.7 per cent, financial sector ended 0.28 per cent lower and property sector rose 1.97 per cent.

Around region, MSCI's Asia ex-Japan stock index was firmer by 0.87 per cent, while Japan's Nikkei index closed up 1.26 per cent.