China, HK stocks slip as AI shares retreat, energy bucks trend

The Shanghai Composite Index fell 0.4% on Tuesday, while China's blue-chip CSI300 Index declined by 0.8% by midday. The Hong Kong benchmark Hang Seng Index also slipped 0.7%. The AI sector took a major hit, with the CSI Artificial Intelligence Index plunging 2.1% and the 5G Communication Index down 1.8%. Major tech companies in Hong Kong experienced a 2% drop.

Changxin Technology, a memory chip maker, experienced a 3.7% decline, reverting some of the 12% surge it saw the previous day. Despite the broad market decline, oil and coal stocks experienced a rise, as concerns over a potential Middle East conflict sent oil prices soaring. PetroChina was among the gainers, climbing more than 2%.

Onshore consumer staples shares saw a modest gain of 0.4%, although China's economic data indicated a slowdown in the second half of the year. Industrial output and retail sales both showed signs of deceleration due to extreme weather disruptions and persistently weak domestic demand, raising pressure on policy. The Robot Industry Index saw a nearly 1% increase, with Leader Harmonious Drive Systems leading the pack at 5.5%, ahead of the anticipated debut of humanoid-robot giant Unitree on Wednesday.