China stocks slip as tech shares lead declines, before key central bank meetings

SHANGHAI: China stocks slipped on Monday, dragged lower by tech shares and tracking weakness across regional markets, as investors turned cautious ahead of a busy week of major central bank meetings overseas.

At the midday break, the benchmark Shanghai Composite index lost 0.2%, while the blue-chip CSI300 index fell 0.5%.

Tech shares were among the key draggers, with the start-up board ChiNext Composite index falling 1.7% and Shanghai’s tech-focused STAR50 index tumbling 1.9%.

CSI 5G communications, a gauge that measures the industry, plunged 3.7% in morning deals.

In the region, stock markets traded cautiously as oil eased from six-month highs ahead of a week packed with central bank meetings and corporate earnings that will further test investor confidence in the AI boom.

China stocks were volatile last week, with blue-chip shares posting a record-long weekly losing streak, despite a surge in trading in exchange-traded funds favored by state-backed investors.

“Concerns over selling caused by trust tax, pressure on ecommerce, a weakening macro and elevated global market volatility have caused an acceleration of China’s market correction,” analysts at Morgan Stanley said in a note.

“So for the A-share market, important to watch is when the National Team officially starts to buy in a high-profile way,” they said.

Meanwhile, investors were cautious ahead of major central bank meetings due later this week, with the US Federal Reserve, Bank of Japan and European Central Bank widely expected to keep rates unchanged while maintaining a hawkish tone.

In Hong Kong, the benchmark Hang Seng index inched up 0.4%, while the city’s tech shares lost 0.4%.