China Stocks Plunge Amid Global Selloff in Metals and Tech Sectors

China's stock markets saw a significant drop as global sell-offs in precious metals and technology sectors reverberated locally. The Shanghai Composite and CSI300 indexes each fell 0.6%. Precious metals stocks were notably hit, with the CSI SSH Gold Equity and CSI SWS Non-ferrous Metal indexes falling 4.7% and 4.9%, respectively.

China's stock markets experienced a notable downturn on Thursday as global sell-offs in precious metals and technology sectors affected local indices. The Shanghai Composite Index and the blue-chip CSI300 Index both declined by 0.6%.

Leading the losses, precious metals stocks faced significant setbacks; the CSI SSH Gold Equity Index plummeted by 4.7%, and the CSI SWS Non-ferrous Metal Index fell 4.9%. The UBS SDIC Silver Futures Fund also experienced intense pressure, reaching the 10% daily limit down for a consecutive fourth day.

Technology shares were not spared, with the CSI AI Index and the semiconductor index decreasing by 1.5% and 0.4%, respectively. Analysts at Nanhua Futures noted that with the approaching Spring Festival, liquidity is tightening, influencing investors to reduce positions. Despite this, they remain optimistic about a post-holiday recovery fueled by robust policy support.