Mainland stocks ended lower on Thursday, reversing earlier intraday gains, as investors digested US Federal Reserve signals on its policy path that failed to offer sustained support, while Hong Kong shares were largely flat.

The benchmark Hang Seng Index ended down 10 points, or 0.04 percent, at 25,530, the Hang Seng China Enterprises Index was down 20 points, or 0.23 percent, at 8,934 and the Hang Seng Tech Index fell 46 points, or 0.83 percent, to 5,534.

Up north, the benchmark Shanghai Composite Index down was 0.7 percent down at 3,873 while the Shenzhen Component Index closed 1.27 percent lower at 13,147 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.41 percent to close at 3,163.

The blue-chip CSI 300 Index lost 0.86 percent, with both it and its Shanghai counterpart booking their third straight day of losses.

The combined turnover of the main indexes in Shanghai and Shenzhen was 1.86 trillion yuan, up from 1.78 trillion yuan on Wednesday.

Shares related to aerospace and newly listed stocks led gains while the real estate sector suffered major losses.

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 percent' growth target and incremental fiscal funds of one trillion yuan," Citi analysts said in a note.

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 J.P. 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, 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 3.21 percent.

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.

The World Bank said on Thursday China's economy held firm in the third quarter of 2025, bringing year-to-date GDP growth to 5.2 percent year on year. (Reuters/Xinhua)