China stocks slip as distillers, chip makers pace decline while gaming stocks halt losses on new game approvals

Onshore stocks traded near a 14-month low as liquor distillers paced decline; gaming stocks halted losses after new batch of title approvals

Financial markets in Hong Kong were closed for a public holiday

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A man walks on the street, in front of the large screen displaying the latest stock exchange data in Shanghai on August 28. Photo: EPA-EFE

Published: 11:09am, 26 Dec 2023Updated: 3:22pm, 26 Dec 2023

Stocks in mainland China declined, approaching a 14-month low as investors sold consumer-related stocks and chip makers. Some video-gaming stocks stemmed losses after the industry regulator approved the biggest batch of new titles in 17 months.

The Shanghai Composite Index fell 0.7 per cent to 2,898.88 on Tuesday, near the lowest since October last year. The CSI 300 Index of the nation’s biggest companies dropped 0.7 per cent. Hong Kong’s financial markets are closed for a holiday.

Top liquor distiller Kweichow Moutai weakened 0.1 per cent 1,670.99, peer Wuliangye Yibin retreated 0.2 per cent to 134.32 yuan and Shanxi Xinghuacun Fen Wine Factory lost 0.8 per cent to 224.97 yuan. China biggest chip maker SMIC fell 2.2 per cent to 51.85 yuan, StarPower Semiconductor tumbled 2.3 per cent to 171.25 yuan while Cambrian slipped 2.7 per cent to 132.50 yuan.

A bottle of Maotai wine on display in a wine shop in Beijing on March 15, 2022. Photo: Simon Song

“Investors are uncertain about the market direction in the short term,” Wang Shijin, strategist at Capital Securities, said in a note on Tuesday. The lack of confidence leads to a subdued market, while the impact of restrictive policies is intensified, he added.

Some video-gaming stocks rebounded, halting a two-day rout sparked by new proposed measures to curb excessive spending and addiction. China approved 105 games in December, the most since July last year. 37Games added 0.3 per cent to 19.02 yuan while G-bits Network Technology jumped 2.2 per cent to 237 yuan.

The Shanghai Composite has lost nearly 6 per cent this year and was headed for a second straight year of decline. The CSI 300 has slid 14 per cent, adding to a 22 percent plunge in 2022 and a 5.2 percent retreat in 2021, an unprecedented streak of annual losses.

Elsewhere, Chongqing Polycomp International surged 151 per cent to 6.69 yuan per share on its first day of trading in Shenzhen.

Apart from Hong Kong, other major Asian markets were also shut for the Christmas holiday. Japan’s Nikkei 225 added 0.2 per cent, while Taiwan’s Taiex Index advanced 0.8 per cent.