China stocks were flat on Friday morning but the Shanghai benchmark is set for a sixth week of gains, as resource shares climbed on solid earnings and optimism that Beijing's supply-side reforms will further boost raw material prices.
China stocks were flat on Friday morning but the Shanghai benchmark is set for a sixth week of gains, as resource shares climbed on solid earnings and optimism that Beijing's supply-side reforms will further boost raw material prices.
Hong Kong shares fell on profit-taking after hitting more than two-year highs the previous session, with index heavyweights life insurer AIA and tech giant Tencent pulling back from record levels.
China's blue-chip CSI300 index rose 0.2 percent, to 3,718.18 points by the lunch break, while the Shanghai Composite Index was unchanged at 3,248.34 points.
Shenzhen's start-up board ChiNext dipped as investors took profit after the small-cap index's nearly 4 percent rebound on Thursday.
The Shanghai market, home to big-cap companies, is set to post its sixth consecutive session of gains, amid signs China's economy is stronger than many had expected.
Earnings for China's industrial firms in June rose at the fastest pace in three months, data showed on Thursday, offering the latest sign economic momentum remains solid.
Meanwhile, activity in China's factory sector is expected to have grown again in July, although some fear the economy could slow in the second half of the year.
Hua Chuang Securities said in its latest strategy report that the market is bolstered by "earnings improvements in cyclical sectors."
Resource shares were firm on Friday, after state media, citing President Xi Jinping, said China will deepen so-called supply-side structural reforms that include efforts to cut excess capacity.
The raw material sector, which potentially benefits from the deeper reforms, rose 0.4 percent, while an index tracking coal shares jumped 0.6 percent.
Consumer shares were also strong, as shares in Kweichow Moutai, China largest liquor marker by market value, rose to near record highs hit on Monday.
HONG KONG
Hong Kong shares corrected as investors took profit after strong gains earlier in the week, and following weakness in U.S. technology stocks on Thursday.
The Hang Seng index dropped 0.6 percent, to 26,959.37 points, while the Hong Kong China Enterprises Index lost 1.2 percent, to 10,729.35.
AIA, which hit a record high on Thursday, fell nearly 2 percent, as some investors believe the 42 percent surge in new business during the first half had already been priced in.
Tencent also fell, taking a breather after jumping more than 60 percent so far this year.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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