China's Markets Stagnate Amid Defensive Moves and AI Concerns

Chinese shares closed flat as apprehension over AI spending and regional tensions pushed investors towards defensive sectors. The Shanghai Composite and CSI300 indices faced weekly declines, while banking and energy stocks gained. The semiconductor and AI sectors saw declines as the market anticipated volatility.

China's stock market concluded Thursday on a flat note, as investor focus shifted toward defensive sectors in response to increasing concerns over artificial intelligence investments and ongoing regional tensions. This shift resulted in tech and property sectors negatively influencing the overall market mood.

The Shanghai Composite Index edged up slightly by 0.2% to settle at 3,876.37, while the more comprehensive blue-chip CSI300 Index saw a 0.6% decline, pointing towards a week filled with losses. Meanwhile, Hong Kong's Hang Seng Index recorded a modest gain of 0.1% despite the Hang Seng Tech Index dipping 0.7%.

On a positive note, China's CSI Defense Index experienced a 1.9% surge hitting a two-month peak, catalyzed by the U.S. approving an $11.1 billion arms deal for Taiwan. Banking and energy sectors also saw noteworthy gains, whereas AI and semiconductor industries faced declines due to decreased funding interest.

(With inputs from agencies.)