<div id="readability-page-1"><div> China and Hong Kong shares eased on Wednesday as tech stocks lost ground, while a private survey showed China's services activity grew at the fastest pace in three months in January.** China's blue-chip CSI300 Index slipped 0.2% by the lunch break, while the Shanghai Composite Index was flat. Hong Kong's benchmark Hang Seng was down 0.4%. ** The services reading, buoyed by stronger new orders and the quickest hiring since July, contrasted with lingering softness elsewhere in the economy.** &#34;The big picture is still that the economy appears to have lost some momentum last month, largely due to domestic weakness in manufacturing and construction,&#34; analysts at Capital Economics said in a note.** Onshore artificial intelligence shares fell more than 3% to a one-month low, following steep losses in U.S. and European equities on fears that advancements in AI could supplant traditional software. The CSI Software Services Index (.CSI930601) was down 2.6%.** Tech giants listed in Hong Kong were down 2.2%.** Defensives outperformed. Onshore banking stocks (.CSI399986) rose nearly 1%，while consumer staple shares extended gains, up 1.1%, supported by a rebound in liquor stocks since the end of January.** Solar names rallied, with the CSI Solar Power Equipment Index (.CSI931528) jumping nearly 7% after local media reported a team linked to Elon Musk recently visited several photovoltaic firms in China. Coal producers also advanced, sending the Coal Index (.CSI000820) up 6.2%. </div></div>

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China and Hong Kong stocks declined on Wednesday, driven by losses in tech shares. The CSI300 Index fell 0.2%, while the Hang Seng dropped 0.4%. Despite a private survey indicating strong growth in services activity, analysts noted a broader economic slowdown, particularly in manufacturing and construction. AI stocks hit a one-month low, and major tech firms in Hong Kong saw a 2.2% decrease. Conversely, banking and consumer staple stocks rose, and solar shares surged nearly 7% following news of interest from Elon Musk's team.

China, Hong Kong stocks edge lower as tech drags