China, HK shares set for weekly losses on geopolitics, muted policy signals

China and Hong Kong stocks were set ​to end the week lower, despite ​Friday's gains, as geopolitical risks weighed ‌on sentiment ​and policy cues from the annual parliamentary meeting offered few surprises. ** The CSI300 Index was on track to end the week 1.1% lower, while the Hang Seng ‌Index was down 3.2%.

China and Hong Kong stocks were set ​to end the week lower, despite ​Friday's gains, as geopolitical risks weighed ‌on sentiment ​and policy cues from the annual parliamentary meeting offered few surprises. ** China's blue-chip CSI300 Index climbed 0.2% by lunch break on ‌Friday, while the Shanghai Composite Index gained 0.3%. Hong Kong benchmark Hang Seng was up 1.8%. ** The CSI300 Index was on track to end the week 1.1% lower, while the Hang Seng ‌Index was down 3.2%. ** Worries that a wider Middle East conflict could trigger an energy ‌shock, lift inflation, and delay rate cuts pressured Asian markets this week. ** Consumer staples shares led gains onshore, up nearly 1.9%. Oil & gas stocks fell nearly 3%, while non-ferrous shares were down 0.5%. ** Hang Seng Tech Index ⁠snapped ​a four-day losing streak, up ⁠3.6%, after JD.com signalled it would scale back investment in its food-delivery business. ** China on Thursday unveiled its ⁠2026 economic growth target at 4.5%-5% at its annual parliamentary meeting, with most other goals broadly in ​line with market expectations. ** The National People's Congress maintained a tech-first policy stance while adopting ⁠a pragmatic fiscal approach, indicating little upside surprise for the index, Morgan Stanley analysts said in a note. ** They ⁠added ​that they remain more positive on onshore A-shares than offshore markets and favour stock-picking over index exposure. They cited stronger policy support for A-share-focused sectors, softer southbound momentum, and ⁠the prospect of state-linked funds buying if volatility rises. ** Onshore investors sold a record of HK$27.7 ⁠billion ($3.54 billion) worth of ⁠shares via the Stock Connect scheme on Thursday.

** Investors are watching closely for a press conference featuring securities regulator Wu Qing at 0700 GMT ‌for market signals. ($1 = ‌7.8228 Hong Kong dollars)

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