Meanwhile, much of the domestic market’s attention has shifted to the upcoming Central Economic Work Conference for possible hints on next year’s policy agenda.

“We keep our expectations realistic and expect ‘around 5%’ growth target and incremental fiscal funds of 1 trillion yuan,” Citi analysts said in a note.

The benchmark Shanghai Composite Index fell 0.46%, while the blue-chip CSI 300 Index lost 0.20%.

A divided Fed cut interest rates on Wednesday but signalled borrowing costs are unlikely to drop further soon as it awaits clarity on the direction of a job market showing signs of softening, inflation that “remains somewhat elevated” and an economy it sees picking up steam next year.

“Overall, we see the combination of lower interest rates and the US avoiding a recession as a constructive combination for risk assets entering 2026,” said Tai Hui, APAC chief market strategist at JP Morgan Asset Management.

“Asia, including China, should still benefit from solid export demand while AI development in China could offer new growth opportunities.”

Property shares were among the biggest drags in morning deals, following sharp rallies a day earlier on rumours of a government mortgage subsidy package. The CSI Real Estate Index, a sub-index tracking the sector, fell 2.51%.

World Bank on Thursday said China’s economy held firm in the third quarter of 2025, bringing year-to-date GDP growth to 5.2% year-on-year.

Hong Kong’s benchmark Hang Seng Index was largely flat, gaining 0.09% in morning deals. The tech index fell 0.65%.

Chinese telecom equipment maker ZTE Corp may pay more than US$1 billion to the US government to resolve years-old allegations of foreign bribery, sources told Reuters.