China Stocks Slump Ahead of Key Parliamentary Meeting

China's stock markets fell on Thursday, ending a brief rally following the Lunar New Year, amid cautious investor sentiment before the upcoming annual parliamentary session. Significant declines in property and tech stocks weighed heavily despite gains in the AI sector spurred by positive Nvidia earnings.

China's stock markets ended lower on Thursday, halting a short-lived rally as the post-Lunar New Year market enthusiasm faded. Investors held back from significant trading decisions ahead of a crucial annual parliamentary meeting scheduled for next week.

The CSI300 index dropped 0.2%, while the Shanghai Composite index remained flat at 4,146.63, losing its early gains. Property stocks experienced notable declines, with the CSI 300 Real Estate Index plummeting 3.3% following Shanghai's relaxed home purchase restrictions for non-residents.

Despite the downturn, the AI sector saw positive movement. The CSI AI Index rose by 1.7%, bolstered by Nvidia's upbeat earnings, calming fears of disruption. Meanwhile, the tech sector's regional rally continued, with notable contributions from DeepSeek's forthcoming developments in AI technology.