China stocks ended little changed on Thursday as investors took profits on this week's rebound after heavy selling last week triggered by Britain's vote to leave the European Union. The bluechip CSI300 index rose 0.1 percent to 3,153.92, while the Shanghai Composite Index lost 0.1 percent to 2,929.61 points. China stocks have been largely screened from the Brexit-triggered turmoil in global markets due to its strict capital control, but after bouncing for three days in a row, traders say the rally is losing steam with no good news in sight.
Sector performance was mixed. Weakness in resources, infrastructure and transportation sectors offset gains in consumer and healthcare shares. Investors are now looking to factory and service sector activity surveys on Friday for more clues on the health of China's economy.
In a sign of increasing confidence among mainland investors, outstanding margin loans - money investors borrowed from brokerages to buy stocks - rose for three days in a row on Wednesday. But as the market hit three-week highs, selling-pressure has increased, with analysts saying there's not enough positive catalysts in sight to justify a sustainable rally. On Thursday morning, weakness in resources, infrastructure and transportation sectors offset gains in consumer and healthcare shares.
But in Hong Kong, all main sectors rose, with financial and property shares leading the gains. Hong Kong-listed shares of China Vanke, which fell to 1-1/2 year lows on Wednesday amid a deepening power struggle between management and major shareholders, rebounded sharply on Thursday morning, as some investors viewed the drop as excessive.
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