China Stocks Slump Ahead of Key Parliamentary Meeting

China's stock markets ended lower on Thursday, halting a short-lived rally as the post-Lunar New Year market enthusiasm faded. Investors held back from significant trading decisions ahead of a crucial annual parliamentary meeting scheduled for next week.

The CSI300 index dropped 0.2%, while the Shanghai Composite index remained flat at 4,146.63, losing its early gains. Property stocks experienced notable declines, with the CSI 300 Real Estate Index plummeting 3.3% following Shanghai's relaxed home purchase restrictions for non-residents.

Despite the downturn, the AI sector saw positive movement. The CSI AI Index rose by 1.7%, bolstered by Nvidia's upbeat earnings, calming fears of disruption. Meanwhile, the tech sector's regional rally continued, with notable contributions from DeepSeek's forthcoming developments in AI technology.