China & Hong Kong Stock Exchanges Flat, Tech Slows Down
Chinese and Hong Kong stocks closed nearly flat on Monday (January 26), as gains in metals and financial stocks offset pressure from technology stocks. The CSI300 index rose 0.1%, while the Shanghai Composite fell 0.1%. In Hong Kong, the Hang Seng edged up 0.1%.
The main drivers of the rally came from non-ferrous metals stocks, which surged 5.2%, and offshore materials stocks, which rose 3.7%. Sentiment in this sector was boosted by a surge in gold, which hit a new record above $5,000 per ounce, as investors sought safe havens amid geopolitical uncertainty.
Conversely, the technology sector was a burden. Big tech stocks in Hong Kong fell 1.2%, while onshore semiconductor stocks fell 2.3%. Analysts believe AI and technology still have the potential to drive growth in 2026, but the market is starting to worry that rising capital spending could squeeze cash flow, and valuations are approaching a "bubble."
From a policy perspective, regulatory oversight is also in the spotlight and is considered to be able to restrain the index's rise. China's capital market authority fined an individual investor approximately 1 billion yuan (approximately $143.77 million) for stock manipulation. The Shanghai and Shenzhen stock exchanges also cracked down on hundreds of abnormal trading practices and opened investigations into several companies for alleged misleading statements.
However, financial sector stocks provided a cushion. Insurance stocks rose 1.9% and bank stocks gained 0.4%, helping offset the decline in technology stocks, resulting in a relatively stable index close. (yds)
Source: Newsmaker.id
