SHANGHAI: Shanghai stocks took a breather on Friday after rising for seven sessions in a row as profit-taking pressure grew.
- But Chinese equities are set for their biggest weekly gain in two months, and analysts expect the upward trend to continue, aided by a strengthening yuan.
- The Shanghai Composite Index fell 0.2% by the lunch break following a seven-day rising streak.
- China’s blue-chip CSI300 Index was flat.
- Private fund manager Rabbit Fund expects China stocks to zig-zag higher as the economy slowly recovers. Analysts also expect the market to benefit from a strengthening yuan, which on Thursday registered its strongest official close in 2-1/2 years.
- The currency appreciation “is expected to whet foreign appetite for yuan assets, push up valuations and increase interbank liquidity,” Huatai Securities said.
- The brokerage expects the yuan to reach 6.82 per dollar by the end of next year, which is nearly 3% stronger than the current level.
- Gold miners jumped as prices of the yellow metal surged to a record high in early Asian trading on Friday.
- Steelmakers rose after China on Friday said it will continue to regulate crude steel output and prohibit the addition of illegal new capacity from 2026 to 2030.
- Expectations of Beijing’s broader crackdown on oversupply and disorderly competition boosted shares in the metal sector .
- But tech stocks, including chip-makers and consumer electronics firms, dropped on profit-taking after strong gains recently.
- Sichuan Swellfun Co shares slumped 3% after the spirit maker denied media reports of a potential acquisition by a rival company.
- The Hong Kong stock market is closed on Friday for a public holiday.
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