Hong Kong stocks slipped 0.27 percent Friday as investors awaited the release of Chinese statistics at the weekend that will shed light on the strength of the world's second largest economy. The Hang Seng Index fell 67.32 points to 24,595.32 on turnover of HK$61.17 billion ($7.90 billion). China will on Saturday announce figures including retail sales and fixed asset investment for August. Data released Thursday showed inflation easing to a four-month low, fuelling the case for a further easing in monetary policy.
"Weaker economic statistics will spark hopes for supportive policies, so the impact of the data will likely be neutral," Central China Securities analyst Zhang Gang told AFP. Among Hong Kong stocks, Internet giant Tencent gained 0.57 percent to HK$122.9, oil company CNOOC plunged 2.32 percent to HK$14.3, China Mobile lost 0.7 percent to HK$99.3 and PetroChina shed 1.31 percent to HK$10.54.
In China the benchmark Shanghai Composite Index rose 0.88 percent, or 20.27 points, to 2,331.95 on turnover of 162.1 billion yuan ($26.4 billion). The close is the highest since March 6, 2013, when the index ended at 2,347.18 points. The index edged up 0.24 percent for the week. The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 0.92 percent, or 11.76 points, to 1,294.79 on turnover of 184.6 billion yuan. It rose 1.66 percent over the week. The gains came after data showed bank lending picked up in August from July.
Domestic banks granted 702.5 billion yuan in new loans in August, nearly doubling from the previous month, central bank data showed Friday. "The better-than-expected lending figure eased earlier worries over tight liquidity conditions," Zhang said. Defence industry stocks extended gains, with Sichuan Haite Hi-Tech surging 7.83 percent to 23.01 yuan in Shenzhen and Hongdu Aviation Industry adding 3.41 percent to 26.41 yuan in Shanghai.
Shipbuilders rose on speculative buying. China CSSC Holdings jumped 10 percent to 32.42 yuan in Shanghai while Sainty Marine advanced 6.35 percent to 13.40 yuan in Shenzhen. Banks were higher in Shanghai on the lending activity in August. Bank of China increased 0.74 percent to 2.72 yuan while ICBC climbed 0.56 percent to 3.57 yuan.