HONG KONG: Chinese stocks rallied on Friday, ending the month higher as investors anticipated positive factory data this weekend and more stimulus from a key policy meeting next month.

The blue-chip CSI300 index closed up 1.14%, ending a two-week losing streak for weekly moves, and gaining 0.7% in November. The Shanghai Composite index was up 0.93% at 3,326.46.

The chip sector sub-index rose 2.38%, the consumer staples sector added 0.95%, and the real estate index climbed 0.75%.

Hong Kong equities also edged up, with the benchmark Hang Seng Index climbing 0.29% to 19,423.61.

However, being more sensitive to international investors’ sentiment towards China, the stocks registered a second month of losses amid looming geopolitical uncertainties and tariff risks.

China’s factory activity likely expanded modestly for a second straight month in November as the stimulus trickled through, a Reuters poll showed, though threats of new US trade tariffs clouded the outlook.

The official purchasing managers’ index (PMI) due Saturday is expected to come in at 50.2, higher than October’s 50.1 and above the 50-point threshold that separates growth from contraction in activity.

Meanwhile, the long-running property downturn is expected to see some improvement, with home prices set to fall at a slower pace this year and next to stabilise in 2026, according to a separate Reuters poll.

Investors are also eyeing December’s Central Economic Work Conference, which could provide more details about the fiscal budget and the scale of stimulus for consumption for the next year, according to Kevin Liu, managing director and strategist at CICC Research.