HONG KONG: China shares ended flat on Thursday as investors rotated into defensive sectors amid concerns over artificial intelligence spending and regional tensions, while tech and property stocks weighed on sentiment.
The benchmark Shanghai Composite Index added 0.2 percent to close at 3,876.37, and the blue-chip CSI300 Index dropped 0.6 percent. Both were headed towards a week of losses.
Hong Kong’s benchmark Hang Seng Index added 0.1 percent. The Hang Seng Tech Index lost 0.7 percent.
Leading gains onshore, China’s CSI Defense Index rose 1.9 percent to a two-month high, after the US approved an USD11.1 billion arms package for Taiwan, the largest ever.
The CSI Banks Index added 2 percent and the energy sector index jumped 1.7 percent as investors piled into defensive plays.
The financials sector climbed 0.8 percent, with broker CICC soaring as much as 10 percent to the daily limit after unveiling plans on Wednesday to buy two smaller rivals in a share-swap deal worth about USD16 billion.
Among laggards, the CSI AI Index and the semiconductor sector both lost 1.8 percent, after jitters over AI funding dragged tech stocks on Wall Street overnight.
The CSI 300 Real Estate Index lost 1.8 percent as developer Vanke’s debt crisis continued.
“We continue to expect the market to remain volatile at elevated levels, and a clearer signal of sustained upside is still needed,” analysts at Huaan Securities said in a note.
“January following a strong year tends to see heightened swings, suggesting short-term risks of a pullback remain,” they added.
Asian shares fell as the tech sector took a beating on renewed angst over AI, while investors braced for a wave of central bank meetings that are set to underscore policy divergence worldwide.
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