SynopsisChinese stocks posted gains on Friday, though the week ended with a decline. A notable shift in investor focus moved away from AI shares toward traditional sectors, revitalizing consumer staples. The Hong Kong market saw a substantial uptick, spurred by a rebound in major tech firms. Comments from the Federal Reserve indicated a potential halt to interest rate increases, influencing global market trends.AgenciesChina AI stocks witness decline.China stocks rose on Friday but were on track to end the week lower, as a rally in AI shares lost momentum and concerns over higher U.S. yields weighed on global equities.China's blue-chip CSI300 Index and the Shanghai Composite Index were both ‌up 0.4% ⁠by the ⁠lunch break. Hong Kong benchmark Hang Seng rose 2.1%.For the ​week, the CSI300 Index was set to close nearly 1% down, while ​the Hang Seng Index was up 0.6%.Consumer staples shares rose 2.6%, leading gains onshore, as sentiment towards AI ​supply chain stocks cooled and investors shifted ⁠into traditional ‌sectors, according to market participants. Chinese liquor giant ​Kweichow Moutai shares ​rose 2.4%.The tech-focused STAR50 Index fell ⁠0.7%, and was down nearly 4% this week. ​The CSI Artificial Intelligence Index edged down 0.2%.Onshore A-share sentiment remained soft this week amid higher U.S. yield concerns and weak domestic macro data, Morgan Stanley analysts said in a note. They lowered their China equity index targets to reflect a weaker growth outlook, tighter liquidity, less ‌favourable flow dynamics and rising regulatory uncertainty.Hong Kong shares rose after Federal Reserve Governor Christopher Waller ​said he ​is leaning ⁠toward keeping interest rates steady at the U.S. central bank's policy meeting this month if the next batch of inflation data shows ​price pressures are continuing to moderate.Tech majors listed in Hong Kong rebounded from a two-month low, up 2.5%. Alibaba shares gained 3.4%.Shares of Chinese smartphones-to-electric vehicles (EV) maker Xiaomi climbed 3.1% on a deal with German auto dealers. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now