Chinese Shares Dip Amid Deflation; Vanke Boosts Property Stocks

Chinese shares experienced a dip for the second consecutive day due to persisting deflationary pressures. Despite this, property stocks surged, led by Vanke's debt-extension vote. The Shanghai Composite Index and the CSI 300 Index faced slight losses, while tech shares recovered from a sell-off, and Vanke led a surge in property shares.

On Wednesday, Chinese shares declined for the second day, driven by ongoing deflationary trends. Vanke, however, propelled a rise in property stocks as it initiated a debt-extension vote.

The Shanghai Composite Index dropped 0.2% to 3,900.50, marking its second fall in as many days, with the CSI 300 Index down 0.1%. Despite a 21-month high 0.7% rise in the consumer price index in November, producer prices fell by 2.2%, increasing concerns around price recovery breadth and sustainability among analysts.

Elsewhere, the banking sector saw its largest single-day loss in over a month at 1.6% despite tech shares rebounding from a sell-off caused by the U.S. President's comments on AI chip shipping. Meanwhile, Vanke's market movements and mortgage subsidy rumors spurred a 10% rise in its shares and a 7% surge in the Real Estate Index.

(With inputs from agencies.)