SHANGHAI: China stocks edged lower on Friday, on track to end the week slightly negative after a four-week winning streak, as regulators tightened margin financing rules.
Hong Kong shares were up this week.
China’s blue-chip CSI300 Index and the Shanghai Composite Index both dropped 0.2% by the lunch break.
Hong Kong benchmark Hang Seng was down 0.3%.
The Shanghai Composite Index was down 0.4% this week, set to end a run of gains since mid-December, while the Hang Seng Index rose 2.4%.
The People’s Bank of China announced cuts to sector-specific interest rates on Thursday to provide an early boost to the economy, signaling it has room for further reductions in banks’ cash reserve requirements and for broader rate cuts this year.
“The moves were a positive surprise as they gave a clear signal on monetary policy stance,” said UBS economists in a note.
“It is difficult to reflate the economy without further policy loosening.”
Market mood was dampened this week after Shanghai, Shenzhen and Beijing bourses said that they would raise the minimum margin requirement for new borrowings to 100% from 80%, effective January 19.
Onshore semiconductor shares rose 1.9%, as TSMC, the world’s main producer of advanced AI chips, on Thursday posted a forecast-smashing 35% jump in fourth-quarter profit to a record high, predicted robust annual growth and flagged more US manufacturing capacity was in the works.
Non-ferrous metal shares extended the rally for the sixth straight session, up 0.5%.
They were up more than 5% this week. Tech majors listed in Hong Kong edged down 0.2%.
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