New | Chinese and Hong Kong markets virtually flat by midsession

Hong Kong and mainland Chinese stocks were little changed in choppy trading by midday on Thursday, as investors seek direction from further policy measures by Beijing in quiet dealings and a contrast to recent volatile business.

The Shanghai Composite eased 0.04 per cent to close the morning nearly flat at 3,787.5, while the CSI 300 Index retreated 0.19 per cent to 3,923.06.

The Shenzhen Composite declined 0.12 per cent to 2,196.22, while the ChiNext Board gave up 1.12 per cent to 2,663.70. In Hong Kong, the Hang Seng Index was little changed, easing 0.07 per cent to the midday close at 24,602.02. The H-share Index dropped 0.54 per cent to 11,213.36, dragged by a 3.5 per cent decline seen in Huaneng Power International.

“Mainland Chinese stocks traded sideways during the morning session with profit taking from investors, after Wednesday’s rally,” said Gerry Alfonso, a director of Shenwan Hongyuan Securities. The tepid sentiment adds downward pressure to stocks while comments from the authorities will only be able to hold up the market for the moment.

Stocks in national defence and ship building led the gainers, while air transportation and medical service companies fell the most in the morning. Large-cap banks and brokerage firms were largely in the red, while all four insurance companies rose in a range between 1 to 3.6 per cent.