<figure id="attachment_3033147" aria-describedby="caption-attachment-3033147" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-3033147" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/04/263a4b38-peoples-bank-of-china-headquarters.webp" alt="People's Bank of China headquarters" width="1600" height="1000" /><figcaption id="caption-attachment-3033147" class="wp-caption-text">The CSI Banks Index added 2% and the energy sector index jumped 1.7% as investors piled into defensive plays. (EPA Images pic)</figcaption></figure>
HONG KONG: China shares ended flat on Thursday as investors rotated into defensive sectors amid concerns over artificial intelligence spending and regional tensions, while tech and property stocks weighed on sentiment.
The benchmark Shanghai Composite Index added 0.2% to close at 3,876.37, and the blue-chip CSI300 Index dropped 0.6%. Both were headed towards a week of losses.
Hong Kong&#8217;s benchmark Hang Seng Index added 0.1%. The Hang Seng Tech Index lost 0.7%.
Leading gains onshore, China&#8217;s CSI Defense Index rose 1.9% to a two-month high, after the US approved an US$11.1 billion arms package for Taiwan, the largest ever.
The CSI Banks Index added 2% and the energy sector index jumped 1.7% as investors piled into defensive plays.
The financials sector climbed 0.8%, with broker CICC soaring as much as 10% to the daily limit after unveiling plans on Wednesday to buy two smaller rivals in a share-swap deal worth about US$16 billion.
Among laggards, the CSI AI Index and the semiconductor sector both lost 1.8%, after jitters over AI funding dragged tech stocks on Wall Street overnight.
The CSI 300 Real Estate Index lost 1.8% as developer Vanke&#8217;s debt crisis continued.
&#8220;We continue to expect the market to remain volatile at elevated levels, and a clearer signal of sustained upside is still needed,&#8221; analysts at Huaan Securities said in a note.
&#8220;January following a strong year tends to see heightened swings, suggesting short-term risks of a pullback remain,&#8221; they added.
Asian shares fell as the tech sector took a beating on renewed angst over AI, while investors braced for a wave of central bank meetings that are set to underscore policy divergence worldwide.

MatchPoint Times

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