Hong Kong shares narrowed early gains to close the morning trading session up 49 points.
The benchmark Hang Seng Index advanced 0.2 percent to 24,531 points, delivering a half-day market turnover of HK$97.4 billion.
The tech gauge edged up 0.07 percent to 4,081 points.
Meituan (3690) fell 5.47 percent after being downgraded by Morgan Stanley on China's e-commerce industry losing growth momentum. Morgan Stanley lowered its target price from 110 yuan to 90 yuan and downgraded its rating from "maturity dividend" to "in line with the market".
The Morgan Stanley report noted that China’s e-commerce industry is entering a phase of structural low growth, with platform gross merchandise value forecast to grow at a compound annual growth rate of only 3.2 percent from 2026 to 2030, slowing to 2.6 percent by 2030.
Unlike typical mature industries, China’s e-commerce sector shows almost no signs of consolidation, with cash-rich platforms continuing to defend their core businesses while entering competitors’ markets.
In the mainland, the Shanghai Stock Exchange Composite Index rose 16.77 points, or 0.46 percent, to 3,665 points, and the Shenzhen Stock Exchange Composite Index edged up 0.27 percent to 11,206 points.
