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SHANGHAI: China and Hong Kong stocks ended largely flat on Thursday, with auto stocks trimming losses after the European Union’s anti-subsidy probe, while investors continued to look for policy measures and signs of economic recovery.

China’s blue-chip CSI 300 Index and the Shanghai Composite Index closed roughly flat, while Hong Kong’s benchmark Hang Seng Index edged up 0.2%.

EU Commission chief Ursula von der Leyen announced an anti-subsidy probe into Chinese electric vehicles (EV) on Wednesday, and declared Europe will do “whatever it takes to keep its competitive edge” at the European Parliament.

China’s automobile index was down as much as 2.0% in early trade, but pared losses quickly and closed down 0.6%.

EV maker BYD, which has sales exposure in Europe, slid 3.1%.

Seres Group, Huawei’s carmaking partner, rose to a maximum of 10%.

China’s central bank will boost demand and support a modest rebound in prices, a publication run by the People’s Bank of China (PBOC) said on Wednesday, citing an unnamed senior central bank official.

A slew of measures announced by authorities to shore up China’s economy have resulted in some nascent signs of effectiveness.

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