SHANGHAI: China stocks edged lower on Friday but posted their strongest weekly gain in nearly two months, led by financial shares, as a ceasefire between Israel and Iran lifted investor sentiment.
- China’s blue-chip CSI 300 Index closed down 0.6%, while the Shanghai Composite Index lost 0.7%. Hong Kong’s benchmark Hang Seng was down 0.2%.
-Chinese brokerage stocks rallied sharply this week, buoyed by easing global geopolitical tensions and improved investor risk appetite, Morgan Stanley analysts said in a note.
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Over a 6- to 12-month horizon, increased portfolio allocation to China appears likely, supported by improving market fundamentals and growing global investor demand for diversification, they said.
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Tianfeng Securities jumped as much as 10% on Friday.
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The CSI 300 Index has risen 2.0% this week, the best weekly gain since May 5, while the Hang Seng Index advanced 3.2%, its strongest week since March 3.
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Onshore financial shares climbed nearly 3% this week.
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China’s industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed in the face of broader economic stress.
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The United States has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official said on Thursday, amid efforts to end a trade war between the world’s biggest economies.
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Shares of Xiaomi surged to a record high on Friday, after the company launched a new electric car model with a strong beat on pre-orders.
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But this has added pressure on other automakers, with Li Auto and Xpeng down 1.8% and 3.2%, respectively.
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Hong Kong’s HSCI Materials Index and mainland’s Non-Ferrous Metals Index rose 2.4% and 1.9%, respectively, as non-ferrous metal prices such as copper broadly rallied.
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