China stocks soar, led by AI firms; Hong Kong slips ahead of policy signals

China stocks surge: Chinese stocks witnessed gains on Tuesday, driven by the strength of artificial intelligence (AI) companies, buoyed by the AI surge in the United States. 

However, Hong Kong shares faced a slight decline as investors awaited further clarity on policy decisions from Beijing's upcoming parliamentary meeting.

In China, the blue-chip CSI 300 Index gained 0.4 per cent during the lunch break, while the Shanghai Composite Index climbed 0.5 per cent. 

Conversely, Hong Kong's benchmark Hang Seng Index lost 0.4 per cent, while the Hang Seng China Enterprises Index edged up 0.1 per cent.

Across broader Asian markets, shares struggled to make significant advances, with investors cautious due to slightly warmer-than-expected Japanese inflation figures. 

Attention also turned to upcoming price data releases in Europe and the US later in the week.

AI companies experienced notable gains, jumping by 3.3 per cent, supported by the surge in generative artificial intelligence in the US, particularly as Nvidia reached a milestone with a market value of $2 trillion for the first time following a bullish financial update.

Shares in communications equipment and automobiles also saw substantial increases, rising by 4 per cent and 3.1 per cent respectively. 

However, sectors such as banks and infrastructure builders experienced losses of more than 2.5 per cent each.

In Hong Kong, tech giants saw a 1 per cent increase, while mainland property developers faced a decline of 2 per cent.

China's CSI 300 Index has rebounded by 11.5 per cent from a recent low earlier this month, supported by measures aimed at stimulating economic growth and bolstering market confidence.

Investors are closely monitoring the upcoming National People's Congress, China's annual parliamentary meeting scheduled to begin on March 5. 

Key topics of interest include discussions on the government's "new model" for the property sector, local government financing and fiscal reforms, as well as potential demand-side stimulus measures such as support for consumption, as highlighted by Goldman Sachs in a recent note.

(With Reuters Inputs)