HONG KONG, Nov 9 (Reuters) - Chinese stocks closed flat on Thursday after latest consumer prices data revived worries on recovery, while investors weighed developments in the property sector and other stimulus measures.
The blue-chip CSI 300 Index and the Shanghai Composite Index ended a wobbly session largely unchanged. Hong Kong's Hang Seng Index edged down 0.3%.
Data showed China's consumer prices dipped back into contraction and factory-gate deflation deepened in October as domestic demand struggled, casting a shadow on the outlook for broader recovery in the world's second-largest economy.
However, the consumer demand is not read too negative, analysts said.
"What we are seeing today is mainly the result of a supply excess, rather than a collapse in demand," said Robert Carnell, regional head of research for Asia-Pacific at ING.
Analysts said overall investor sentiment is marginally picking up as China's economic data shows signs of stabilisation and U.S. is likely pausing rate hikes.
Shares of embattled property giant Country Garden closed down nearly 10%, giving up almost all of the previous day's gains on the back of a report that Beijing had asked Ping An Insurance to take a controlling stake in the homebuilder.
Ping An subsequently said in a statement to Reuters it has "not been asked by (the) government to takeover Country Garden".
Ping An's Hong Kong-listed shares fell 1.3% while its mainland A shares went down 3%
Stocks of other Chinese developers also fell, with the Hang Seng Mainland Properties Index dropped 4.2%.
Toxic assets or bankruptcy companies usually go to distressed asset managers in China, BofA analysts said in a note.
Previous experience shows Ping An is "likely wary of becoming involved in (property) company operations and taking excessive responsibility" which could impact its financial stability, they said.
On the flip side, server maker Inspur Electronic Information Industry surged 10% after local media reported Nvidia is planning to release three new chips for China. (Reporting by Summer Zhen; Editing by Lincoln Feast, Muralikumar Anantharaman and Varun H K)