China Stocks Stumble as Investors Await Policy Signals

China's stocks slightly declined, halting a two-day rally after the Lunar New Year, as investors awaited policy direction from an upcoming parliamentary session. The property sector notably fell, countering gains seen in AI and info tech stocks. The market buzz now pivots to key legislative meetings for guidance.

China's stock market experienced a slight dip on Thursday, ending a two-day rally post-Lunar New Year. Investors appear cautious, opting to hold back from major decisions ahead of the annual parliamentary session scheduled next month.

The Shanghai Composite Index fell 0.1% by midday to 4,144.08 points, reversing earlier gains. Blue-chip indices followed suit, with the CSI300 slightly down by 0.2%. Notably, the property sector led the declines with a 2.7% drop, negating Wednesday's gains post-relaxation in Shanghai's home purchase rules for non-residents.

Conversely, the technology sector flourished, buoyed by the CSI AI Index's 0.9% rise, boosted by Nvidia's strong earnings report. Optimism surrounds domestic AI advancements as DeepSeek, a Chinese AI lab, announced collaboration with Huawei. Eyes now turn to the National People's Congress and the CPPCC for policy insights.