China shares drop on precious metals, tech selloff

Updates to market close

HONG KONG, Feb 5 (Reuters) - China stocks tumbled on Thursday amid a global selloff in precious metals and technology stocks that rippled through local sectors, while turnover eased with a holiday season approaching.

** The Shanghai Composite index .SSEC slipped 0.6% to 4,075.92 points, and the blue-chip CSI300 index .CSI300 was also down 0.6%.

** The renewed selloff in gold and silver triggered heavy losses across precious metals stocks. The CSI SSH Gold Equity Index .CSI931238 tumbled 4.7% and the CSI SWS Non-ferrous Metal Index .CSISNMIM was down 4.9%.

** UBS SDIC Silver Futures Fund 161226.SZ, the only silver futures fund in mainland China, hit the 10% daily limit down for the fourth consecutive day.

** Tech shares also faltered following a global selloff. The CSI AI Index .CSI930713 was down 1.5% and the semiconductor index .CSI931865 declined 0.4%.

** Trading volume on Shanghai and Shenzhen A-shares totalled 2.2 trillion yuan ($316.99 billion), the lowest since December 31, 2025.

** "Liquidity is tightening seasonally before the Spring Festival (February 15-23), and investors may choose to reduce positions before the holiday to avoid overseas risks, putting downward pressure on indices," analysts at Nanhua Futures wrote in a note.

** Still, there's a high probability of renewed strength after the holiday, especially strong policy support expectations provide solid underpinning, limiting downside space, they added.

** Solar-related shares also tumbled after multiple companies denied cooperation with Elon Musk. The photovoltaic industry index .CSI931151 slid 5.3%, and shares of Jinko Solar 688223.SS were down 6%.

** Meanwhile, the CSI Bank Index .CSI399986 added 1.6% and the liquor distillers .CSI399997 added 0.3%.

** In Hong Kong, benchmark Hang Seng .HSI closed up 0.1%, while Hang Seng Materials Index .HSCIM fell 4.6%.

** Baidu's Hong Kong-listed shares 9888.HK climbed 2.7%, the most in two weeks, on share buyback and dividend optimism.

($1 = 6.9403 Chinese yuan renminbi)

(Reporting by Jiaxing Li in Hong Kong; Editing by Harikrishnan Nair)

((jiaxing.li@thomsonreuters.com))