SHANGHAI, Sept 8 – Chinese shares were little changed on Monday, as gains in consumer staples helped counter losses in artificial intelligence stocks, with investors pulling out of crowded high-growth sectors.
** China’s blue-chip CSI300 Index was flat by the lunch break, while the Shanghai Composite Index gained 0.2%.
** Meanwhile, Hong Kong benchmark Hang Seng was up 0.4%.
** Artificial intelligence shares, which surged nearly 50% this year, fell 3%, with chip maker Cambricon Technologies down nearly 5%.
** Chinese optical module giants Zhongji Innolight Co and Eoptolink Technology slumped as much as 15% each, even as the two companies are set to be included in FTSE China A50 Index on September 19.
** China stocks posted their biggest weekly fall in five months last week, as a wave of profit-taking followed China’s largest-ever military parade and media reported that Beijing is considering measures to curb excessive stock speculation.
** Consumer staple shares rose 1.7%, leading gains onshore.
** Analysts at UBS China Equity team said that even if there are any forthcoming curbs, they are unlikely to match the severity of those seen in 2015, especially given that ETF flows and financing leverage remain at healthy levels.
** The investment bank said that recent price swings highlight the strategic value of holding volatility through options, especially as the perceived support from state-backed buyers — often dubbed the “national team put” — appears to have faded following the parade.
** Market reaction was limited as China’s export growth slowed in August, weighed down by weaker shipments to the U.S. as a temporary boost from Beijing’s tariff truce with its top consumer market fades. Market reaction was limited so far.
** Onshore property shares rose 1.5% after China’s tier 1 city Shenzhen eased some home purchase restrictions last Friday.
This article was generated from an automated news agency feed without modifications to text.
