SHANGHAI: China stocks closed lower on Thursday, as investor appetite was dampened after a survey showed services sector activity in February had expanded at the slowest pace in six months amid the government's tough containment measures to tackle the pandemic.

** The blue-chip CSI300 index was down 0.6% at 4,551.63, while the Shanghai Composite Index dropped 0.1% to 3,481.11 points.

** The Caixin/Markit services Purchasing Managers' Index (PMI) in the world's second-largest economy dropped to 50.2 in February - the lowest since August and only a touch above the 50-point mark that separates growth from contraction on a monthly basis - from 51.4 in January.

** Consumer staples dropped 2%, with liquor makers down 3.5%.

** Semiconductors slipped 2.1%, new-energy firms lost 1.9% and defence stocks ended 2.5% lower.

** Bucking the broader market slump, the CSI 300 Real Estate Index gained 2.4%, after the chairman of China's banking and insurance regulator said the trend of property bubbles in China had been reversed.

** Coal shares rose amid surging prices following Russia's invasion of Ukraine and an announcement by the Zhengzhou Commodity Exchange on Wednesday to raise thermal coal margin requirement.

** China's CSI SWS Coal Index and the CSI Energy Index climbed 2.3% and 2.7%, respectively. Oil stocks rose as well.

** Tourism stocks jumped 3.5% and transportation shares added 2.7%.

** China's rubber-stamp parliament begins its annual meeting on Saturday, with investors hoping for more easing measures to be introduced.

** US Federal Reserve Chairman Jerome Powell on Wednesday said rates would likely be raised by only 25 basis points this month, and the war in Ukraine had made the outlook "highly uncertain".

** Finance stocks and energy firms added 1.6% and 2.8%, respectively. HSBC Holdings added 4.1% to become the biggest point contributor lifting the Hang Seng.

** The Hang Seng Tech Index lost 1.2% with Meituan and Tencent Holdings down over 1% each.

** Tencent said it would reduce transaction fees for small and medium-sized merchants using its WeChat payments system by 10%.

** Macau gaming stocks listed in Hong Kong rose on media reports that casino companies in Macau will have their licences extended by six months.