China shares drop on precious metals, tech selloff

HONG KONG: China stocks tumbled on Thursday amid a global selloff in precious metals and technology stocks that rippled through local sectors, while turnover eased with a holiday season approaching.

• The Shanghai Composite index slipped 0.6% to 4,075.92 points, and the blue-chip CSI300 index was also down 0.6%.
• The renewed selloff in gold and silver triggered heavy losses across precious metals stocks.
• The CSI SSH Gold Equity Index tumbled 4.7% and the CSI SWS Non-ferrous Metal Index was down 4.9%.
• UBS SDIC Silver Futures Fund, the only silver futures fund in mainland China, hit the 10% daily limit down for the fourth consecutive day.
• Tech shares also faltered following a global selloff. The CSI AI Index was down 1.5% and the semiconductor index declined 0.4%.
• Trading volume on Shanghai and Shenzhen A-shares totalled 2.2 trillion yuan ($316.99 billion), the lowest since December 31, 2025.
• “Liquidity is tightening seasonally before the Spring Festival (February 15-23), and investors may choose to reduce positions before the holiday to avoid overseas risks, putting downward pressure on indices,” analysts at Nanhua Futures wrote in a note.
• Still, there’s a high probability of renewed strength after the holiday, especially strong policy support expectations provide solid underpinning, limiting downside space, they added. Solar-related shares also tumbled after multiple companies denied cooperation with Elon Musk.
• The photovoltaic industry index slid 5.3%, and shares of Jinko Solar were down 6%.
• Meanwhile, the CSI Bank Index added 1.6% and the liquor distillers added 0.3%.
• In Hong Kong, benchmark Hang Seng closed up 0.1%, while Hang Seng Materials Index fell 4.6%.
• Baidu’s Hong Kong-listed shares climbed 2.7%, the most in two weeks, on share buyback and dividend optimism. ‑Reuters