At the midday break, the Shanghai Composite Index declined 0.12% to 3,342.22 points, and China’s blue-chip CSI300 Index was down 0.13%.

Leading losses onshore, the CSI Semiconductor Industry Index declined 1.68%, its biggest retreat in more than two weeks.

In Hong Kong, the Chinese H-share index rose 1.34% while the Hang Seng Index added 1.52%, both at four-month highs.

The Hang Seng Artificial Intelligence Theme Index jumped 1.4% to touch a three-year high.

Shares of Alibaba climbed as much as 4.5% to a 2-1/2-year high following a report that Apple will partner with the Chinese e-commerce giant to roll out AI features for iPhone users in China.

Hong Kong’s benchmark index has advanced 10.62% so far this year, the best performer among major markets in the region, largely due to DeepSeek-triggered tech rally and China’s market rescue measures last month.

“There is a strong case for potential re-rating, especially for Hong Kong-listed Chinese stocks, in which the valuation is much more attractive,” Invesco Mainland China and Hong Kong CIO Raymond Ma said in a note.

“Re-rating opportunities would come when the market reassess China’s innovative capabilities and corporate earnings growth following the AI breakthrough,” he added.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.72% while Japan’s Nikkei index climbed 1.49%.