SHANGHAI: Hong Kong stocks rose on Friday, logging their best weekly performance in 9 months, as sentiment toward Chinese internet companies brightened, while mainland Chinese shares fell as investors locked in profits on chip stocks after a blistering rally.
China’s blue-chip CSI300 Index ended 2 percent lower, while the Shanghai Composite Index lost 1 percent. Hong Kong benchmark Hang Seng was up 0.6 percent. The Hang Seng Index has advanced nearly 4 percent this week, logging its biggest weekly gain since October 2025. The CSI300 ended the week 1.3 percent lower.
The Hang Seng Tech Index has climbed 12 percent from a 1-1/2-year low hit in June, as investors rotate out of hardware stocks and into lower-valuation names. The index has risen roughly 5 percent this week. Alibaba shares added 2 percent, while Tencent fell 2 percent.
The upside thesis for China’s internet sector remains far from certain, UBS analysts said in a note, adding that while positives from expectations laid out in Alibaba’s June quarter preview have helped pull the sector back from extreme pessimism, further gains likely require additional confirmation. Opportunity cost could re-emerge as a limiting factor if the AI hardware theme regains momentum, the analysts said.
Onshore, the tech-focused STAR50 Index fell 5.5 percent, though it was still up 4.5 percent this week, outperforming South Korea’s KOSPI, which fell 7.6 percent over the same period.
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