China Stocks Rebound Amid Hong Kong's Market Dip

China's stock market ended higher on Friday following three sessions of losses, while Hong Kong shares fell. Investors are cautious ahead of Federal Reserve Chair Jerome Powell's speech in Jackson Hole. The Shanghai Composite and CSI300 indices saw gains whereas electric vehicle shares experienced significant losses over the week.

China's stocks rebounded on Friday after three consecutive sessions of losses, providing some relief to investors. The Shanghai Composite index closed 0.2% higher at 2,854.37 points, while the blue-chip CSI300 index gained 0.42%, lifted by its financial sector sub-index, which rose by 1.18%.

Meanwhile, Hong Kong's stock market diverged, with the Hang Seng index falling 0.16% to 17,612.10 and the Hang Seng China Enterprises index down 0.08% to 6,219.24. The energy sector in Hong Kong saw a 0.6% rise, contrasting with a 0.56% dip in the IT sector.

Investors globally are keenly watching Federal Reserve Chair Jerome Powell's upcoming speech in Jackson Hole, Wyoming, which could provide insights into future U.S. rate cuts. Tightening trade tensions between China and the European Union have also impacted market sentiment, notably with electric vehicle shares dropping 2.4% this week. The yuan strengthened by 0.16% against the U.S. dollar, closing at 7.1365.