Global Market: China stocks hold steady as gold miners gain, tech shares slip; Hong Kong dragged by insurers

Mainland Chinese equities traded largely flat on Thursday as gains in gold-related stocks helped offset weakness in technology shares, while Hong Kong markets came under pressure after insurer stocks tumbled, according to Reuters.

At the midday break, the benchmark Shanghai Composite Index was little changed at 3,878.92, while the blue-chip CSI300 Index edged 0.4% lower. Investors remained cautious as they balanced strength in commodity-linked counters against softer sentiment in the technology sector.

Technology stocks tracked losses seen across regional markets. The STAR50 Index, which tracks China's technology-focused companies, slipped 0.2%, while the CHINEXT Composite Index, representing growth-oriented firms, declined 0.5%.


Gold mining and metals shares, however, provided support to the broader market. Reuters reported that spot gold climbed to a seven-week high as a weaker U.S. dollar and lower Treasury yields boosted demand for the precious metal. Optimism surrounding the reopening of the Strait of Hormuz also supported bullion prices. Reflecting the trend, the CSI Non-Ferrous Metals sub-index advanced 0.7%.

Meanwhile, investors continued to monitor renewed tensions between China and the United States after the latest exchange of trade and technology-related measures. Despite the escalation in rhetoric, the immediate impact on Chinese equity markets remained relatively limited.

According to Reuters, William Bratton, Head of Cash Equity Research for Asia-Pacific at BNP Paribas, said that both China and the United States are seeking to reduce their dependence on each other's technology sectors, reinforcing a prolonged global technology divide.

Hong Kong Under Pressure as Insurers Tumble

Hong Kong equities underperformed regional peers, with the benchmark Hang Seng Index falling 1.8% during morning trade. The Hang Seng Tech Index also declined nearly 2% as technology stocks mirrored broader regional weakness.

Insurance companies were among the biggest losers after a Caixin report stated that mainland Chinese tax authorities have begun levying taxes on income earned from offshore insurance policies.

Following the report, Prudential shares dropped 5.8%, while AIA Group slumped 8.8%, weighing heavily on the broader Hong Kong market.

Trade Data in Focus

Market participants are now looking ahead to China's trade data, scheduled for release on Friday, for fresh clues on the health of the world's second-largest economy.

Reuters reported that Larry Hu, Chief China Economist at Macquarie, said China's economy continues to operate on a "two-speed" model, with policymakers providing only enough stimulus to achieve official growth targets. He noted that as long as exports and manufacturing remain resilient, authorities are likely to keep policy support for weaker areas such as consumption and the property sector relatively restrained.

The upcoming trade figures are expected to offer investors further insight into whether China's export momentum remains strong amid persistent geopolitical and economic uncertainties.