SHANGHAI: China stocks fell on Monday amid heightened geopolitical tensions around the Taiwan Strait, and a slump in ChatGPT-related shares damped sentiment.

But the first batch of blue-chips to float under a U.S-style listing system surged on their debut.

The Hong Kong market is closed for the Easter holiday.

The blue-chip CSI300 Index fell 0.5%, while the Shanghai Composite Index dipped 0.4%.

Risk appetite was curbed by a flare-up in geopolitical tensions, after China’s military simulated precision strikes against Taiwan in a second day of drills around the island on Sunday.

China began three days of military exercises after Taiwan President Tsai Ing-wen returned from a brief visit to the United States.