HONG KONG: China shares were 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.
As of the midday trading break, the benchmark Shanghai Composite Index added 0.2% to 3,876.40.
The blue-chip CSI300 Index dropped 0.6%.
In Hong Kong, the benchmark Hang Seng Index weakened 0.4%.
The Hang Seng Tech Index lost 1.3%, bringing the loss since the October peak to roughly 20%.
Leading gains onshore, China’s CSI Defense Index rose more than 2% to a two-month high, after the US approved an $11.1 billion arms package for Taiwan, the largest ever.
The CSI Banks Index added 1% and the energy sector index jumped 0.8% as investors piled into defensive plays.
The financials sector climbed 0.2%, with broker CICC surging by the daily limit of 10% after it unveiled plans on Wednesday to buy two smaller rivals in a share-swap deal worth about $16 billion.
Among the laggards, the CSI AI Index lost 1.4% and the semiconductor sector lost 1.1%, after jitters over AI funding dragged tech stocks on Wall Street overnight.
The CSI 300 Real Estate Index lost 1.4% 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.
Broader in the region, shares fell as the tech sector took a beating on renewed angst about AI spending, while investors braced for a wave of central bank meetings set to underscore policy divergence worldwide.‑Reuters
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