China stocks end lower as traders hold off before key policy meeting

HONG KONG: China stocks closed lower on Thursday, snapping a two-session post-Lunar New Year rally, as investors held off on major moves ahead of an annual parliamentary meeting next week.

China’s blue-chip CSI300 index finished 0.2 percent lower. The Shanghai Composite index was flat at 4,146.63, surrendering its opening-hour gains.

Property stocks led the declines, with the CSI 300 Real Estate Index falling 3.3 percent, erasing all gains from Wednesday after Shanghai further eased home purchase eligibility for non-residents.

Also weighing on markets on Thursday, the liquor sector weakened 1.5 percent and the energy sector lost nearly 1 percent.

“With the Shanghai Composite Index gradually approaching the highs before this round of correction, the spring rally has entered its second half,” Huatai Futures analysts said in a note.

Trading sentiment has cooled following the post-Lunar New Year catch-up bounce, with market focus now shifting to the upcoming National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) meeting sessions, for fresh policy signals and guidance, analysts said.

The closely watched annual parliamentary meeting will begin on March 5, state media reported in late December.

Meanwhile, the CSI AI Index jumped 1.7 percent and the info tech sector climbed 1.5 percent, joining a regional tech rally as upbeat earnings from AI darling Nvidia soothed concerns over AI-driven disruptions. DeepSeek, the Chinese artificial intelligence lab that is expected to launch a major update, has granted early access to domestic suppliers including Huawei Technologies, adding fresh optimism towards domestic AI development.

In Hong Kong, the Chinese H-share index, the Hang Seng China Enterprises Index fell 2.4 percent, while the Hang Seng Index was down 1.4 percent.

The Hang Seng Tech Index tumbled nearly 3 percent to its lowest level since last June.