China Market Brief: February 26, 2026 Chinese equity markets showed mixed performance this Thursday as a recent post-holiday rally lost momentum. The **Shanghai Composite** inched down **0.01%** to close at **4,146.63**, while the blue-chip **CSI 300** slipped **0.19%** to end at **4,726.87**. Investors are largely moving into a "wait-and-see" mode ahead of the **National People’s Congress** in early March. There is high anticipation for official growth targets, with many analysts expecting a GDP goal of **"around 5%"** for the 2026 fiscal year. Sector Divergence The property sector continues to face significant headwinds. Major players saw declines as the market digested news of falling home prices. In December, new home prices dropped **2.7%** year-on-year, and recent projections suggest a further **2.8%** decline throughout 2026. Despite the broader slump, local governments are intensifying support. Shanghai recently reduced the residency requirement for homebuyers from three years to **one year** in core districts to stimulate demand. Technology and AI Strength In contrast to the cooling property market, technology shares extended their rebound. This movement was catalyzed by **Nvidia's** latest earnings report, which posted a **73%** year-on-year revenue surge to **$68.1 billion**. While Nvidia noted it is not currently projecting data center revenue from China due to export rules, the "AI halo effect" boosted domestic sentiment. Local tech firms like **Suzhou TFC Optical** and **Victory Giant** saw gains of **8%** and **7.8%** respectively. Regional Outlook Hong Kong's **Hang Seng Index** experienced more pronounced volatility, closing down **1.44%** at **26,383.05**. This followed a cautious economic forecast from the Financial Secretary, who projected regional growth between **2.5%** and **3.5%** for the year. The underlying focus for the coming week remains on the "Twin Conferences." Market participants are looking for specific fiscal expansion details and the formal unveiling of the **15th Five-Year Plan**, which will dictate the roadmap for industrial self-reliance and technological innovation through 2030.