SHANGHAI: China stocks fell on Thursday, flirting with five-month lows, as trade tensions hit electric vehicle stocks, nullifying the gains in banking shares.
However, Hong Kong shares rose as regional markets were buoyed by strengthened bets that the US Federal Reserve will cut interest rates next month.
The market was also powered by the tech sector as better-than-expected results propelled Xiaomi to three-month highs, lifting sentiment.
Both the Shanghai Composite index and China’s blue-chip CSI 300 index closed down 0.3%.
Hong Kong’s main Hang Seng index ended Thursday 1.4% firmer.
Most Chinese EV makers fell as Brussels published its revised tariff plan for China-made EVs, potentially making the provisional penalties definitive. An index tracking EVs fell 1.2%.
Meanwhile, stocks linked to China’s widely popular video game “Black Myth: Wukong” slumped after surging over the past week. Huayi Brothers tumbled 13%. In Hong Kong, shares of Xiaomi jumped 9% to the highest level in three months. The company on Wednesday reported higher-than-expected revenue for the second quarter, bolstered by its fledgling auto business.
The blue-chip CSI300 index was down 0.26%, with its financial sector sub-index higher by 0.03%, the consumer staples sector down 0.87%, the real estate index up 0.19% and the healthcare sub-index down 0.55%.
The smaller Shenzhen index ended down 1.07% and the start-up board ChiNext Composite index was weaker by 0.762%.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.34%, while Japan’s Nikkei index closed up 0.68%.
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