SHANGHAI: China stocks closed down on Friday, as investor optimism toward the world’s second-largest economy waned after the authorities’ stimulus policy, while a weakening yuan pressured the stock market further.
Meanwhile, Hong Kong Exchanges and Clearing Ltd said trading in both the securities and derivatives markets on Friday was cancelled due to a black rainstorm warning.
China’s blue-chip CSI 300 Index closed down 0.5%, while the Shanghai Composite Index edged 0.2% lower.
For the week, the CSI 300 Index lost 1.4% and the Hang Seng Index slipped 1%.
Trade numbers on Thursday showed a possible stabilisation in China’s downturn, but economists said China’s economy is still at risk of missing Beijing’s annual growth target of about 5%. Some of the recent easing measures may have little impact on the slowing economy, they added.
China’s yuan slipped on Friday to its weakest since December 2007, hit by capital outflow pressures and a yield gap with major economies, particularly the United States.
Shares in energy companies and media firms finished down 1.4% and 2.3%, respectively.
Semiconductor shares rose 1% on the launch of Huawei’s Mate 60 Pro+ smartphone, which captured global attention for revealing the Chinese tech firm’s success in beating back US sanctions.
Chipmaking equipments-related shares led the gains. Sunlour Pigment Co soared 20%, Shenzhen Rongda Photosensitive & Technology Co jumped 6.3%, while Semiconductor Manufacturing International Corp (SMIC) added 0.7%.
Shares of Apple suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. Luxshare Precision Industry Co dropped nearly 2 percent.
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