China stocks close down as investor optimism wanes, yuan weakens

China stocks closed down on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. Meanwhile, Hong Kong Exchanges and Clearing Ltd said trading in both the securities and derivatives markets on Friday was cancelled due to a black rainstorm warning.

China stocks closed down on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further.

Meanwhile, Hong Kong Exchanges and Clearing Ltd said trading in both the securities and derivatives markets on Friday was cancelled due to a black rainstorm warning. ** China's blue-chip CSI 300 Index closed down 0.5%, while the Shanghai Composite Index edged 0.2% lower.

** For the week, the CSI 300 Index lost 1.4% and the Hang Seng Index slipped 1%. ** Trade numbers on Thursday showed a possible stabilisation in China's downturn, but economists said China's economy is still at risk of missing Beijing's annual growth target of about 5%. Some of the recent easing measures may have little impact on the slowing economy, they added.

** China's yuan slipped on Friday to its weakest since December 2007, hit by capital outflow pressures and a yield gap with major economies, particularly the United States. ** Shares in energy companies and media firms finished down 1.4% and 2.3%, respectively.

** Semiconductor shares rose 1% on the launch of Huawei's Mate 60 Pro+ smartphone, which captured global attention for revealing the Chinese tech firm's success in beating back U.S. sanctions. ** Chipmaking equipments-related shares led the gains. Sunlour Pigment Co soared 20%, Shenzhen Rongda Photosensitive & Technology Co jumped 6.3%, while Semiconductor Manufacturing International Corp (SMIC) added 0.7%.

** Shares of Apple suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. Luxshare Precision Industry Co dropped nearly 2%.