China Stocks: A Turn in the Tide

China's stocks slightly declined, ending a record-breaking streak for the Shanghai Composite. While the defence and tech sectors showed strong performances, real estate and healthcare lagged. Analysts foresee continued bullish momentum. In Hong Kong, new listings uplifted the market, marking a robust year for Asian equities.

China's stock market took a slight downturn on Tuesday as the Shanghai Composite index broke its nine-day winning streak, slipping 0.1% to 3,961.21. Despite the decline, the defence sector reached a new three-year high, driven by live-fire drills around Taiwan.

The blue-chip CSI300 index remained largely stable, while the gold industry recouped earlier losses, and technology sectors like artificial intelligence and semiconductors saw modest gains. In contrast, real estate and healthcare sectors experienced declines.

In Hong Kong, the Hang Seng Index grew by 0.5%, buoyed by strong performances in the tech industry. Notably, six Chinese companies debuted, with most surpassing their IPO prices, concluding a successful year for Hong Kong in Asia's equity capital markets.

(With inputs from agencies.)