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Hong Kong Stocks Edge Higher as Tech Shares Slide; Baidu Plunges 11%

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Hong Kong stocks closed marginally higher Wednesday, with gains in the broader market offsetting sharp losses in technology shares as investors remained cautious over rising oil prices and bond yields.

The Hang Seng Index gained 23.92 points, or 0.1%, to close at 25,495.07, while the Hang Seng China Enterprises Index rose 18.01 points, or 0.2%, to 8,471.21.

The Hang Seng TECH Index, the benchmark tracking 30 largest technology-themed companies listed on the Hong Kong bourse, fell 1.2%.

Tech stocks tracked losses on Wall Street as higher U.S. Treasury yields raised concerns over valuations and returns from artificial intelligence investments. Renewed tensions in the Middle East also kept oil prices volatile, adding to inflation concerns.

In corporate developments, Baidu (HKG:9888) plunged more than 11% a day after reporting a sharp drop in second-quarter attributable profit to 2.32 billion yuan from 7.32 billion yuan a year earlier.

Shanghai Fudan Microelectronics (HKG:1385, SHA:688385) fell nearly 6% after saying it will invest 17.5 million yuan in intangible assets in a new joint venture with four other investors.

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