SHANGHAI, May 5 (Reuters) - Hong Kong stocks rose on Friday after data showed China's services activity grew for a fourth consecutive month in April, while mainland China shares declined, dragged down by artificial intelligence-related companies.
** China's blue-chip CSI300 Index was down 0.5% by the lunch break, while the Shanghai Composite Index dropped 0.7%.
** Hong Kong's benchmark Hang Seng Index added 0.6%%, while the China Enterprises Index climbed 1.4%.
** China's service activity grew in April, a survey showed on Friday, as businesses continued to benefit from a return to pre-pandemic levels of demand and output, although expansion slowed slightly.
** "As China's economic recovery continues, we expect investor sentiment to gradually improve towards China equity," said Jian Shi Cortesi, investment director for China at GAM Investments. "Admittedly, there are still a number of uncertainties such as U.S.-China tensions and geopolitical concerns."
** Tech giants listed in Hong Kong advanced 1.6%, with Alibaba Group Holding Ltd up 1.6% after Bloomberg News reported that the e-commerce's international online shopping unit is exploring a U.S. listing.
** In mainland markets, AI-related stocks fell. Communications equipment slumped 3.2%, and AI shares slipped 2.1%,
** Real estate developers gained 2.6% amid market expectations of more policy support after a survey showed China's average daily home sales by floor area were down 22% compared with the May Day holiday period before COVID-19.
** The Hang Seng Mainland Properties Index rose 3.1%.
** Mainland financials firms gained 1.2%, with banks up 1.5% and brokers rising 1.6%. (Reporting by Shanghai Newsroom; Editing by Sonia Cheema)
