HONG KONG: China stocks edged lower on Tuesday, with the Shanghai benchmark poised to snap a nine-day winning streak as investors took profits following its best run in more than a year.
At the midday break, the Shanghai Composite index was down 0.1% at 3,961.21 and set to break its best winning run since September 2024.
The blue-chip CSI300 index was largely flat after fluctuating between gains and losses in the morning session.
The defence sector climbed 0.4% to fresh high in nearly three years, extending its recent gains, as China launched a live-firing drill around Taiwan simulating blockade.
The gold industry index recouped the 3% loss at open and edged up 0.3%, as precious metals steadied after a sharp selloff in the previous session.
The artificial intelligence sector index rose 0.6% and the semiconductor index added 0.5%. Among major laggards, the real estate index was down 1.6%, the healthcare sub-index lost 0.7% and the insurer sector weakened around 1%.
“The market is consolidating with increasing volume as a bullish trend emerges,” analysts at Pacific Securities said in a note.
“Sectors are showing rotational strength in an overall upward trend, and we expect this rally to start with broad gains and accelerate given extremely low option volatility levels.”
In Hong Kong, the Hang Seng Index was up 0.5% at 25,751.64, and the tech index rose 1.1% to a two-week high.
The Hang Seng China Enterprises Index rose 0.7%.
Six Chinese companies made their Hong Kong trading debuts with most opening above their IPO prices, rounding off a resurgent year for listings as the city dominated Asian equity capital markets.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.1%, while Japan’s Nikkei index was down 0.1%.
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