Mainland stocks post worst week in a month
Chinese mainland stocks ended lower on Friday, notching their worst weekly losses in a month amid simmering trade tensions between China and the US.
The benchmark Shanghai Composite Index dropped 1.47 percent to 3,071.54 points on Friday, while the blue-chip CSI300 index lost 1.3 percent, ending on 3,760.85 points.
Both indexes logged their worst weeks since late March, shedding 2.8 percent and 2.9 percent, respectively.
Investors are likely to remain cautious in the following weeks as worries persist over the trade tensions between China and the US.
The US Treasury is considering ways to restrict sensitive Chinese investments in the US by invoking an emergency powers law and bringing forward some security review reforms for corporate acquisitions, a senior Treasury official said on Thursday.
Logistics and trade shares saw heavy losses. Xiamen ITG Group, a trade company based in East China’s Fujian Province, for example, closed down 6.1 percent.
Securities analysts believe that market sentiment will hardly be boosted this week amid tight liquidity and determination by the Chinese authorities to realize deleveraging activities.
Combined turnover on the two bourses stood at 447 billion yuan ($71 billion) on Friday, narrowing down from 483 billion yuan on the previous trading day.
Sectors slid across the board, led by brokerages which have been reporting drops in 2017 profits.
Analysts are bullish on chip stocks, which will continue luring investors’ attention this week, as the Chinese central government looks to speed up chip investment.
China has already made the semiconductor industry a key priority under its “Made in China 2025” strategy to reduce reliance on foreign technologies and create its own domestic giants.