China stocks ended lower on Friday as investors took profits after recent gains and stayed on the sidelines, awaiting the result of possible talks over the weekend for clarity on whether the conflict between the U.S. and Iran could be nearing an end. At the close, the Shanghai Composite index slipped 0.1% to snap five straight winning sessions. The blue-chip CSI300 Index lost 0.17%. For the week, the SSEC rose 1.64%, while the CSI300 gained 1.99%. Analysts at Morgan Stanley noted that Hong Kong could have a bigger rebound upside versus the A-share market. Liquor and consumption were among the biggest losers, dragged lower by Kweichow Moutai’s weaker annual results. Wang Changlin, vice chair of the country’s state economic planner, stated that China will continue to diversify its energy imports. Lei Meng, China equity strategist at UBS Securities, mentioned that changes in the Middle East situation would significantly impact Chinese export-oriented companies. China is due to release its monthly fixing of the benchmark loan prime rates on Monday, with all participants in a Reuters survey expecting no change.
