China stocks flat as defensive plays offset tech weakness

China stocks were little changed on Tuesday, Business Recorder reported, as gains in defensive sectors offset losses in technology shares. The Shanghai Composite rose 0.03 per cent to 3,987.56 points at lunchtime, while the CSI300 slipped 0.06 per cent. The start-up board ChiNext Composite fell 0.9 per cent, the tech-focused STAR50 dropped 1.5 per cent and the CSI Semiconductor Index slid 2 per cent.

The CSI Liquor Index rose 2.7 per cent and consumer staples gained 1.6 per cent by midday. Banks also advanced, as the CSI Banks Index added 1.1 per cent. In Hong Kong, the Hang Seng Index declined 1 per cent to 25,310.88 and the Hang Seng Tech Index lost 0.8 per cent. Online fast-fashion retailer Shein's shares fell 8 per cent in their debut on Tuesday, with investors concerned that long delays to its listing had eroded its competitive edge.

Analysts at Hwabao Securities said caution was likely to dominate, with trading expected to stay within a range, citing an earnings lull and uncertainty over the meeting schedule between Chinese and US leaders. They also noted that Federal Reserve Chair Kevin Warsh's hawkish shift last week has led investors to rethink the interest-rate outlook. Elsewhere in the region, selling pushed global bond yields to new major highs, while renewed Middle East fighting lifted oil above $90 a barrel.