China, Hong Kong stocks gain as AI shares rally ahead of Xi-Trump meeting

By Reuters News

SHANGHAI, Sept 22 (Reuters) - Mainland China and Hong Kong stocks rose on Tuesday, led by gains in AI shares, after US and Chinese officials agreed to hold further talks on AI safety, while investors looked ahead to a top leaders' meeting later this week.


** At the midday break, the benchmark Shanghai composite index .SSEC inched up 0.2% and the blue-chip CSI300 index .CSI300 gained 0.5%.

** The smaller Shenzhen index .SZSC advanced 0.5%, the startup board ChiNext Composite index .CNT was higher by 0.9% and Shanghai's tech-focused STAR50 index .STAR50 rose 1.3%.

** AI shares led gains in morning deals, with a sub-index .CSI930713 rising 2.3%.

** Senior US and Chinese officials will meet again in about two months in Shenzhen, China, to discuss artificial intelligence dangers and communications protocols in the event of AI safety incidents, US Treasury Secretary Scott Bessent said on Monday.

** Bessent also offered positive comments about the US-China trade relationship, ahead of Chinese President Xi Jinping's state visit to the US from September 23 to 25 at the invitation of President Donald Trump.

** "Our expectations for this state visit are limited, with our focus more on the optics and symbolism of the trip rather than actual outcomes," said William Bratton, head of cash equity research for APAC at BNP Paribas.

** "In addition to the extension of the Busan truce, we expect any new announcements to be focused on the setting of guardrails and frameworks to manage and entrench the status quo of 'constructive strategic stability' that both countries committed to post Trump's May visit to China."

** In Hong Kong, the benchmark Hang Seng index .HIS climbed 0.4%, while the city's tech shares .HSTECH rose 1%.

** Hong Kong shares of Alibaba Group 9988.HK hit a one-month high at one point after the company's CEO Eddie Wu said on Tuesday that it aims for its cloud global data centre capacity to surpass 20 GW by 2032.

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