China, HK stocks steady as AI hardware bounce counters weak data

SHANGHAI: China and Hong Kong stocks held steady on Tuesday, as a mild rebound in AI hardware shares failed to offset losses elsewhere, with mixed August data pointing to persistently weak domestic demand. China’s blue-chip CSI300 Index was flat by the lunch break, while the Shanghai Composite Index lost 0.1%. Hong Kong benchmark Hang Seng was down 0.2%. China’s industrial output picked up pace in August, though sluggish consumption and a worsening investment slump reinforced concerns over deepening economic imbalances. Meanwhile, new home prices fell again in August, underscoring persistent weakness in the housing market. The CSI 300 Financial and Real Estate Index fell nearly 1% each, while consumer staple shares were flat. “Following weaker-than-expected credit demand, August activity data reinforced our view that a recovery in domestic demand remains elusive,” Barclays analysts said in a note, adding that they maintain their below-consensus 2026 GDP growth forecast of 4.5%. The tech-focused STAR50 Index rose as much as 3%, rebounding for the first time in a week from a 4-1/2-month low. The CSI Semiconductor Material and Equipment Thematic Index gained 2.7%. Onshore sentiment ha