Tech Giants Shine Amid Flat China Stocks as Housing Policy Disappoints

China stocks remained largely unchanged as a housing policy briefing failed to introduce new stimulus. While property stocks fell, tech giants buoyed Hong Kong shares. China's housing policy update, involving a 4 trillion yuan financing plan, did not meet expectations, impacting market sentiment.

On Thursday, China's stock performance was mostly stagnant, with investor sentiment cooling following a lackluster housing policy briefing that offered no new stimulus measures. This left some in the market dissatisfied, though Hong Kong saw a boost in shares from tech giants.

China's blue-chip CSI300 Index and the Shanghai Composite Index were both marginally up by midday, climbing less than 0.1%. Conversely, Hong Kong's Hang Seng Index gained 0.9%, partly due to encouraging performances from major tech firms. Housing policy updates announced by Minister Ni Hong included expanding the 'white list' of projects eligible for financing and boosting bank loans for developments to 4 trillion yuan, roughly $562 billion.

However, analysts noted the briefing centered around implementing pre-existing policies rather than introducing new ones, with the proposed housing development in urban villages falling short of market expectations. As a result, China's property stocks declined 5%, and Hong Kong's fell 3.5% as investors turned wary amid China's ongoing real estate market challenges. Meanwhile, Sunac's significant share price drop of over 20% further compounded the property sector's woes.

(With inputs from agencies.)