(Updates to market close)

SHANGHAI, August 3 (Reuters) - China stocks ended lower on

Monday as a global rout in artificial intelligence-related

shares dragged down semiconductor stocks, while Hong Kong's

internet platforms bucked the trend, led by a jump in Alibaba ( BABA )

after it released its latest AI model.

** China's blue-chip CSI300 Index closed 1% lower,

while the Shanghai Composite Index lost 0.6%. Hong Kong

benchmark Hang Seng was up 0.5%.

** The selling in AI-related stocks globally, with the

chip-heavy Kospi index down 20% last month in South

Korea, has rocked markets and pushed investors to reassess the

valuation of China semiconductor stocks.

** The tech-focused STAR50 Index fell 5.1%, while the

CSI All Share Semiconductor Index dropped 6.9%.

However, shares of newly listed memory chip giant CXMT

rose 1.9% as its valuation still appears reasonable

compared to other smaller players in the sector.

** "We believe that, under the broad assumption that the AI

industry trend has not yet reached bubble territory nor come to

an end, the recent pullback could actually improve the

risk-reward profile of AI trades from a medium- to long-term

perspective," analysts at CICC said in a note.

** "Therefore, even though most investors still view AI

technology as the core investment theme, after such violent

turbulence, a degree of portfolio rebalancing is likely a

natural response for many," they said.

** Alibaba ( BABA ) shares jumped 7% after it released what it

said is its largest and most capable artificial-intelligence

model, the Qwen3.8-Max.

** Tech majors listed in Hong Kong rose nearly 1%.

** China's manufacturing sector expanded at its slowest pace in

four months in July, as output and new orders rose more slowly,

while export orders returned to growth after a contraction, a

private-sector survey showed on Monday.