It made its stand clear on the eve of President Xi Jinping's visit to India to attend the two-day BRICS summit.
"My colleagues have responded to the listing matters many times here. I would like to re-emphasize what have been said," Chinese Foreign Ministry spokesperson Geng Shunag said here, referring to Beijing's opposition to Azhar being declared as a terrorist.
"As we speak, various parties are still divided on India's application to list certain individuals. The technical hold to the listing application gives more time to the (1267 UN) Committee for deliberation and relevant parties for further negotiations.
"This also shows that China is serious and responsible for this issue," Geng said at a press conference.
China has twice blocked India's attempt to get the UN to ban Pakistan-based JeM chief Azhar who is accused of plotting the Pathankot and Uri terror attacks.
On India's bid to enter NSG, Geng said China stuck to its earlier stance.
"China's position has not changed regarding the accession to the NSG by India and other non-NPT countries," he said.
"As for the China-India leaders' meeting, President Xi Jinping will meet and talk with relevant leaders, including Indian Prime Minister (Narendra) Modi, on the sidelines of the BRICS Summit to be held in Goa, India. Relevant arrangements are still under discussion, and we will release information in due course," he added.
In June, China blocked India's entry into the elite grouping, citing the latter's non-signatory status to the Nuclear Non-Proliferation Treaty.
(Gaurav Sharma is the Beijing-based correspondent for IANS. He can be contacted at email@example.com and firstname.lastname@example.org)
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