By Jiaxing Li

HONG KONG, Feb 13 (Reuters) - China stocks edged lower on Thursday, while Hong Kong markets jumped more than 1% as investors sought cheaper valuations offshore, fuelled by ongoing AI enthusiasm. ** At the midday break, the Shanghai Composite Index .SSEC declined 0.12% to 3,342.22 points, and China's blue-chip CSI300 Index .CSI300 was down 0.13%.

** Leading losses onshore, the CSI Semiconductor Industry Index .CSI931865 declined 1.68%, its biggest retreat in more than two weeks.

** In Hong Kong, the Chinese H-share index .HSCE rose 1.34% while the Hang Seng Index .HSI added 1.52%, both at four-month highs.

** The Hang Seng Artificial Intelligence Theme Index .HSAIT jumped 1.4% to touch a three-year high.

** Shares of Alibaba 9988.HK climbed as much as 4.5% to a 2-1/2-year high following a report that Apple AAPL.O will partner with the Chinese e-commerce giant to roll out artificial intelligence features for iPhone users in China.

** Hong Kong's benchmark index has advanced 10.62% so far this year, the best performer among major markets in the region, largely due to DeepSeek-triggered tech rally and China's market rescue measures last month.

** "There is a strong case for potential re-rating, especially for Hong Kong-listed Chinese stocks, in which the valuation is much more attractive," Raymond Ma, Chief investment officer, Mainland China and Hong Kong at Invesco, said in a note.

** Re-rating opportunities would come when the market reassess China's innovative capabilities and corporate earnings growth following the AI breakthrough, he added.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.72% while Japan's Nikkei index .N225 climbed 1.49%.

(Reporting by Jiaxing Li in Hong Kong; Editing by Sherry Jacob-Phillips)

((jiaxing.li@tr.com))