China stocks close flat as metals rally counters chip losses

China shares closed roughly flat on Wednesday, as strong performances of metal-linked stocks partially offset losses in semiconductor names, while Hong Kong equities edged higher.

China's blue-chip CSI300 Index .CSI300 ended 0.2% lower, while the Shanghai Composite Index .SSEC closed 0.1% up. Hong Kong benchmark Hang Seng .HSI was up 0.3%.

China's CSI Non-ferrous Metal Industry Index .CSI000811 climbed 2.5%, leading gains onshore, while Hong Kong's material shares .HSCIM rose 2.4%.

China's central bank said on Tuesday it will step up financial support to boost domestic demand, as industrial overcapacity and lacklustre consumption weighed on business confidence and dampened the growth outlook.

Consumer staples .CSICSwere roughly flat after data showed China's consumer inflation cooled in January, while producer price deflation persisted, reinforcing market calls for more policy measures to address the mismatch between supply and demand.

The CSI Liquor Index .CSI399997 was down 0.2%.

Tech majors listed in Hong Kong .HSTECH were up 0.9%, while onshore semiconductor shares <.CSIH30184> dropped 1.2%.

About 55 trillion yuan ($7.96 trillion)–60 trillion yuan of bank savings, roughly split between households and corporates, are set to mature by 2026, according to UBS analysis of major Chinese banks.

UBS strategist Lei Meng said this could release "excess savings" built up since 2020, with household funds likely to keep flowing into markets through direct channels such as stocks and mutual funds and indirect channels such as insurance.

As global capital trickles back toward China, policymakers are signalling they want growth without the froth, using tougher enforcement and cooling measures to slow the market's pace to strengthen its long-term appeal.

Shares of WuXi Biologics 2269.HKclimbed as much as 4% to their highest level since October 9 on robust earnings.

($1 = 6.9109 Chinese yuan renminbi)

-Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips and Harikrishnan Nair/Reuters