China shares end lower on profit-taking, rotation into financials

China stocks closed down on Thursday, as investors took profits after a strong rally this year and rotated into financial shares.

** China's blue-chip CSI300 Index 3399300 ended 0.5% lower, while the Shanghai Composite Index 000001 lost 0.4%. Hong Kong benchmark Hang Seng HSI was roughly flat.

** China's onshore shares are locked in a near-term tug-of-war around the 4,000 level, as a firmer U.S. dollar index weighs on tech valuations, while profit-taking, softer-than-expected tech earnings and elevated position concentration add internal pressure, said analysts at China Fortune Securities.

** The Shanghai Composite Index is up 17% so far this year, trading at 3,931 points. It rose above the 4,000 level for the first time in 10 years in late October.

** Shares in onshore brokerages (.CSI399707) rose as much as 2% after China International Capital Corp (CICC) 601995 said it would acquire two rivals, stoking expectations of further consolidation in the country's $1.6 trillion securities industry.

** Meanwhile, the CSI Bank Index (.CSI399986) gained 0.8%, with Bank of China 601988 up 4%.

** Tech majors traded in Hong Kong HHSTECH fell 0.6%, tracking an overnight drop in their counterparts in New York KWEB.

** Onshore AI shares 9930713 opened higher before reversing gains, despite Nvidia NVDA CEO Jensen Huang on Wednesday shrugging off concerns about an AI bubble as the company surprised Wall Street with accelerating growth after several quarters of slowing sales. Semiconductor shares HH30184 were down 1.4%.

** The CSI 300 Real Estate Index 000952 rose 2.2% after media reported that China is considering fresh property stimulus such as mortgage subsidies.

** China left its benchmark lending rates unchanged on Thursday for the sixth consecutive month in November, in line with market expectations.

** Wingtech 600745 shares jumped as much as 5% after the Dutch government stepped back from taking control of chip maker Nexperia, a Wingtech unit.