China stocks close flat, energy gains offset small-cap losses

SHANGHAI – China stocks closed roughly flat on Wednesday, as gains in energy shares offset losses in small-cap shares, while the Hong Kong market was closed for a public holiday.

** China’s blue-chip CSI300 Index closed up 0.05%, while the Shanghai Composite Index was down 0.01%.

** The CSI 2000 index, which tracks small-cap stocks, fell 2.3%, while energy shares added 1.3%.

** Chinese retail investors often favor small concept stocks, primarily for speculative purposes, attracted by potentially quick gains despite the risks involved.

** Some AI and e-commerce concept stocks fell sharply, with Hydsoft Technology down 10%, while bank stocks extended their rally.

** China’s central bank conducted a medium-term loan operation on Wednesday while keeping the interest rate unchanged.

** Efforts will continue in 2025 to stabilise China’s real estate market, China Construction News reported, citing a work conference held by the housing regulator.

** The CSI real estate shares were down 1.6%.

** Financial markets in Hong Kong will be closed through Thursday for the holiday.

** Looking ahead to 2025, AllianceBernstein maintains a cautiously optimistic outlook on China’s onshore stocks.

** “With policy stimulus guiding the way, the domestic economy is anticipated to emerge from its downturn and gradually stabilize, leading to a recovery in the earnings of listed companies,” said Huang Senwei, senior market strategist at AllianceBernstein.

** Sources with knowledge of the discussions told Reuters on Tuesday that Chinese authorities have agreed to issue 3 trillion yuan (USD 411 billion) worth of special treasury bonds next year to ramp up fiscal stimulus.

(USD 1 = 7.2988 Chinese yuan renminbi)

(Reporting by Shanghai Newsroom; Editing by William Mallard and Edmund Klamann)