SHANGHAI: China stocks closed down on Tuesday, as investors took profits and stayed cautious amid a lack of fresh catalysts. Hong Kong shares were marginally higher.
China’s blue-chip CSI300 Index ended 0.9 percent lower, while the Shanghai Composite Index lost 0.4 percent. Hong Kong benchmark Hang Seng was up 0.2 percent.
Mainland equities have largely traded range-bound this month, as investors rotated across sectors during a lull in corporate earnings and policy announcements.
UBS analysts expect China’s economy to expand by 4.5 percent in 2026, down slightly from previous years, as weakening exports weigh on overall growth. Domestic activity is likely to remain resilient, even as the property sector continues its downturn, they said, adding contractions are seen easing.
Liquor shares edged down after a 5 percent rally from the previous day. Onshore AI shares fell 2.4 percent, while tech majors traded in Hong Kong were little changed.
China’s baijiu industry recorded its steepest quarterly earnings decline in a decade in the third quarter of 2025, according to HSBC analysts.
The analysts said demand and pricing are likely to stay subdued in the absence of policy support. They expect earnings pressure to persist for several more quarters, with destocking likely to continue through the fourth quarter of 2025 and the first quarter of 2026.
Hong Kong shares of electric vehicle maker Xpeng jumped more than 18 percent to their highest level since July 2022, after the company said last week it would roll out three self-developed robotaxi models and start trial operations in 2026.
Ganfeng Lithium shares rose as much as 4 percent on progress in its Argentina lithium project.
Comments
Comments are closed for this article.