At the midday break, the Shanghai Composite index was down 0.14% at 3,375.17 points.

China’s blue-chip CSI300 index was down 0.3%, with its financial sector sub-index trading 0.1% lower, the consumer staples sector down 1.12%, the real estate index down 0.67% and the healthcare sub-index down 0.69%.

In Hong Kong, the Hang Seng Index was down 0.67% at 23,623.55, while the Hang Seng China Enterprises Index fell 0.63%.

Hong Kong-listed tech giants underperformed, dropping 1% by lunchtime, despite a 30% year-to-date surge in the sub-index.

“Technically speaking, the long-term bull run in the tech sector has not ended.

“But in the short term, trading is quite crowded, making it prone to sharp rises and falls,” Pacific Securities analysts said in a note.

“Investors should consider taking some profits,” it added.

Some sell-side analyst also noted the concerns over China’s deflationary pressure and tariff uncertainties may weigh on the sentiment in the near term.

US President Donald Trump withdrew a plan to double tariffs on steel and aluminium from Canada to 50%, just hours after announcing the higher tariffs, in rapid-fire moves that scrambled financial markets overnight.

Swiss bank Julius Baer today raised its 12-month target for the Hang Seng Index to 26,500, citing its bullish view on consumer stocks given its under China’s stimulus focus.

On information technology, the bank expects some consolidation in the second quarter, but will pave the way for another potential rally later in the year.

The smaller Shenzhen index was up 0.37%, the start-up board ChiNext Composite index dropped 0.24% and Shanghai’s tech-focused STAR50 index was up 0.12%​.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.11%, while Japan’s Nikkei index was up 0.08%.