China stocks steady as metals rally counters consumer, AI losses

SHANGHAI: China shares held steady on Wednesday, as strong performances in metal-linked stocks partially offset losses in consumer and AI sectors, while Hong Kong equities edged higher.

• China’s blue-chip CSI300 Index edged 0.2% lower by the lunch break, while the Shanghai Composite Index nudged 0.2% higher.
• Hong Kong benchmark Hang Seng was up 0.4%.
• China’s CSI Non-ferrous Metal Industry Index jumped 3.2%, leading gains onshore, while the Hong Kong’s material shares rose 3.3%.
• China’s central bank said on Tuesday it will step up financial support to boost domestic demand, as industrial overcapacity and lacklustre consumption weigh on business confidence and dampen the outlook for growth.
• Consumer staples edged 0.2% lower after data showed China’s consumer inflation cooled in January while producer price deflation persisted, reinforcing market calls for more policy measures to address the mismatch between supply and demand.
• The CSI Liquor Index extended losses, down 0.5%.
• Tech majors listed in Hong Kong were up 1.1%, while onshore artificial intelligence shares dropped 1.7%.
• About 55 trillion–60 trillion yuan of bank savings, roughly split between households and corporates, are set to mature by 2026, according to UBS analysis of major Chinese banks.
• UBS strategist Lei Meng said this could release “excess savings” built up since 2020, with household funds likely to keep flowing into markets through direct channels such as stocks and mutual funds and indirect channels such as insurance.
• As global capital trickles back toward China, policymakers are signalling they want growth without the froth, using tougher enforcement and cooling measures to slow the market’s pace in order to strengthen its appeal in the long term.
• Shares of WuXi Biologics climbed as much as 4% to their highest level since October 9 on robust earnings.‑Reuters