China Markets React to Record Gold Prices, Urban Renewal Plans

China's stock market closed slightly higher, led by non-ferrous metal shares as gold hit a record high. Urban renewal commitments and property stabilization are part of the new Five-Year Plan. Semiconductor stocks rose slightly due to Nvidia's upcoming AI chip shipments, while Kuaishou's shares fell after a cyber attack.

In a mixed trading session on Tuesday, China's stock markets saw a slight uptick led by non-ferrous metal shares, buoyed by a record surge in gold prices. The blue-chip CSI300 Index increased by 0.2%, while the Shanghai Composite Index posted a modest gain of 0.1%. In contrast, Hong Kong's benchmark Hang Seng dipped 0.1%.

The trading day was marked by anticipation of China's latest Five-Year Plan, announced to begin in 2026. Urban renewal plans and property market stabilization are priorities. However, the CSI 300 Real Estate Index showed a decline of 0.3%, reflecting the sector's ongoing challenges.

Despite a buoyant session for semiconductor shares following Nvidia's announcement regarding AI chip shipments, Kuaishou Technology saw its shares plummet by 6% due to a recent cyber attack. Amidst these developments, China Vanke narrowly avoided default, and tech giants in Hong Kong traded lower.