China stocks flat as metals, property gains offset tech

SHANGHAI: China stocks were roughly flat on Thursday, as gains in non-ferrous metal and property shares offset losses in tech names, while Hong Kong shares were up.

• China’s blue-chip CSI300 Index and the Shanghai Composite Index both edged down 0.1% by the lunch break, while the Hong Kong benchmark Hang Seng was up 0.5%.
• Real estate shares climbed onshore and offshore, with mainland property developer shares listed in Hong Kong up 4.5%. Seazen shares surged nearly 13%.
• CSI300 real estate index in mainland China rallied over 4%, the best single-day gain in more than a month.
• The upbeat sentiment came after local media reported Chinese regulators are no longer requiring property developers to submit some monthly financial metrics, the so-called “three red lines”.
• Non-ferrous metals shares rose 3% onshore, while in Hong Kong materials stocks were up 1.7%, as the spot gold price hit a record high.
• Turnover in China’s onshore markets has stayed around 3 trillion yuan ($420 billion), with new hot sectors emerging and momentum building in nonferrous metals, analysts at Caida Securities said in a note.
• From these signals, the broker said there is little cause for concern at the index level, noting a gradual shift in market focus from technology to cyclicals, with the rally spreading from precious metals to nonferrous and chemicals.
• The Shanghai Composite Index was up nearly 5% this year, hovering near a decade high.
• Tech shares listed in Hong Kong were down 0.7%, while onshore semiconductor and artificial intelligence shares eased 2.6% and 0.3%, respectively.