China stocks decline for third day, investors await policy cues

** China's blue-chip CSI300 index was up 0.3%. ** Citi analysts said they expect "few surprises" in economic data or policy impact towards the year-end, adding they'll be watching the Central Economic Work Conference later this month for further policy cues.

China stocks dropped for the third straight session on Thursday, notching a one-week low, with investors awaiting policy guidance from a key meeting later this month.

** The Shanghai Composite Index fell as much as 0.5% to its lowest since November 28 before closing down 0.1% at 3,875.79, marking a third straight day of losses. ** China's blue-chip CSI300 index was up 0.3%.

** Citi analysts said they expect "few surprises" in economic data or policy impact towards the year-end, adding they'll be watching the Central Economic Work Conference later this month for further policy cues. ** China is likely to stick to its current annual economic growth target of around 5% in 2026 as top leaders to meet soon to chart the economic course for next year, a goal that would require authorities to keep fiscal and monetary spigots open as they seek to snap a deflationary spell.

** Sector performance was mixed. Weighing on the markets on Thursday, the CSI Liquor Index was down 2% and the consumer staple sector weakened 1%. ** Property-related shares extended the decline with the CSI 300 Real Estate Index weakening 0.3%, as sentiment remained subdued amid Vanke's liquidity struggle.

** In contrast, the CSI Semiconductor Index rallied more that 3% and the robotics index jumped 2%. The artificial intelligence index was up nearly 1%. ** In Hong Kong, the benchmark Hang Seng Index added 0.7% to 25,935.90 and the tech index jumped 1.5%.

** Despite the weakness in the market this week, downside surprises should be limited towards the year-end, with another U.S. rate cut potentially supporting global liquidity conditions, which would also bolster domestic sentiment, analysts at Pacific Securities said in a note. ** "We think investors should keep a long bias and waiting for risk appetite to return," they added.