At the midday break, the Shanghai Composite was up 0.03% at 3,987.56 points, while the blue-chip CSI300 index slipped 0.06%. Trading remained cautious as investors assessed the outlook for economic growth, interest rates and upcoming corporate earnings.
Technology stocks were among the biggest drags. The ChiNext Composite fell 0.9%, while Shanghai’s technology-focused STAR50 Index declined 1.5%. The CSI Semiconductor Index also dropped 2%, reflecting continued weakness across the technology segment.
Losses in technology shares were partly offset by buying in defensive sectors. The CSI Liquor Index rose 2.7% by midday, while the consumer staples sector gained 1.6%. Banking stocks also performed strongly, with the CSI Banks Index advancing 1.1%.
Hong Kong stocks fared worse, with the Hang Seng Index down 1% at 25,310.88, while the Hang Seng Tech Index declined 0.8%. Shares of online fast-fashion retailer Shein fell 8% during their debut in Hong Kong on Tuesday.
Broader Asian markets also came under pressure as rising global bond yields increased concerns about financial conditions. Renewed fighting in the Middle East added another layer of uncertainty, pushing oil prices above $90 a barrel.
Background
The cautious trading in Chinese markets comes amid a backdrop of global uncertainties, including rising bond yields and geopolitical tensions in the Middle East. These factors have contributed to a risk-averse sentiment among investors.
The combination of higher energy costs, elevated bond yields and uncertainty over monetary policy has weighed on risk appetite across regional markets. For Chinese equities, the lack of strong near-term catalysts means investors could continue to favour defensive sectors while remaining cautious toward technology stocks.
