China stocks end week near 3-1/2-year high on AI optimism

SHANGHAI, Sept 26 - China stocks fell on Friday, but ended the week near their highest level in 3-1/2-years as investor sentiment remained upbeat on growing confidence in the country's artificial intelligence potential.

** China's blue-chip CSI300 Index closed down 1%, while the Shanghai Composite Index lost 0.7%. Hong Kong's benchmark Hang Seng was down 1.4%.

** The CSI300 Index was up 1% this week, hitting its highest point since February 2022. The Hang Seng Index slipped nearly 1.6%, but still hovered near its strongest level since July 2021.

** Confidence in China's AI capabilities continued to strengthen this week, driving gains in domestic markets. Shares of tech giant Alibaba soared to a four-year high as the company increasingly prioritises AI as a central focus alongside its traditional e-commerce business.

** Onshore artificial intelligence shares climbed as much as 7% this week, after surging nearly 70% year-to-date.

** While shares listed in Hong Kong have historically outperformed during U.S. rate-cut cycles, UBS analysts maintained a preference for onshore shares, the so-called A-shares, citing potentially stronger support from domestic retail inflows over foreign institutional participation. Sector-wise, they favour AI-related themes, brokers and high-dividend stocks.

** Tech majors listed in Hong Kong were down 1.6%this week, after investors booked profits on Friday.

** Real estate shares rose as much as 3%, after state media reported several emerging first-tier cities were studying new policy measures for the real estate market.

** Hong Kong-listed innovative drug index fell as much as 3%, after U.S. President Donald Trump threatened 100% tariffs on imports of branded pharmaceuticals from October 1.

This article was generated from an automated news agency feed without modifications to text.