SHANGHAI: China stocks ended lower on Friday, as losses in biotech and chipmaking shares outweighed gains in commodity-related stocks.
Hong Kong stocks gained following strength on Wall Street overnight.
The Shanghai Composite Index fell 0.1 percent, while the large-cap CSI300 Index lost 0.5 percent.
In Hong Kong, the Hang Seng Index edged up 0.1 percent.
Morgan Stanley said that China’s A-share sentiment has softened as US yields rise.
But the bank continues to “see scope for improving A-share market dynamics as the largest liquidity overhang fades and global AI trades regain momentum,” it said in a note, worries around the risk of liquidity drains from the market have accompanied recent mammoth IPOs such as chipmaker CXMT’s float.
Overnight in the US, the technology-heavy Nasdaq outperformed peers after chipmaker Nvidia’s bumper revenue forecast reaffirmed the strength of the AI boom, fueling gains in technology stocks.
But Chinese chipmakers fell on Friday after a mid-week rebound.
Chinese biotech shares were also among the biggest decliners.
Property shares, however, rose on Friday despite signs of further deterioration in the sector. Commodity stocks also gained.
“The prolonged property downturn remains a key driver of China’s K-shaped recovery, and a further growth miss could increase the likelihood of incremental policy support this fall,” Morgan Stanley said.
“We think an equity market rebound is possible if confirmed.”
In Hong Kong, materials media and IT stocks were among the top performers, while semiconductor and shipping shares were among the biggest losers.
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