SHANGHAI: China stocks ended lower on Friday as investors took profits after recent gains and stayed on the sidelines, awaiting the result of possible talks over the weekend for clarity on whether the conflict between the US and Iran could be nearing an end.
A 10-day ceasefire between Lebanon and Israel took effect on Thursday and President Donald Trump said the next meeting between the United States and Iran may take place over the weekend.
At the close, the Shanghai Composite index slipped 0.1 percent to snap five straight winning sessions. The blue-chip CSI300 Index lost 0.17 percent.
For the week, the SSEC rose 1.64 percent, while the CSI300 gained 1.99 percent.
In Hong Kong, the Hang Seng Index dropped 0.89 percent.
“In the very near term Hong Kong could have bigger rebound upside versus the A-share market given its higher correlation with the global market,” analysts at Morgan Stanley said in a note. “While near-term tensions have eased, we continue to see energy security and high-end manufacturing as key medium-term themes, with China well positioned to gain share amid a global capex upcycle and the ongoing push for self-sufficiency.”
Liquor and consumption were among the biggest losers, dragged lower by Kweichow Moutai’s weaker annual results.
China will continue to diversify its energy imports and boost energy reserves to help enhance its capacity to cope with an “emergency situation,” Wang Changlin, vice chair of the country’s state economic planner, said on Friday.
Lei Meng, China equity strategist at UBS Securities, said changes in the Middle East situation would have the biggest impact on Chinese export-oriented companies.
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