China Stocks Dip Amid Unchanged Rates But Eyes Weekly Gains

China's stock market experienced a dip on Friday after benchmark lending rates remained unchanged. Despite this, major indexes like the CSI300 and Shanghai Composite are expected to achieve their first weekly gains in a month, bolstered by the U.S. Federal Reserve's significant rate cut earlier in the week.

China's stock market faced a downturn on Friday as benchmark lending rates remained unchanged, contrary to expectations. Despite this, major indices are poised for their first weekly gains in a month, driven by the U.S. Federal Reserve's substantial rate cut earlier in the week.

In Hong Kong, the Hang Seng Index jumped over 1%, marking its best weekly performance in five months amid a broad rally in global markets. China's blue-chip CSI300 index fell 0.27% by midday, while the Shanghai Composite index dropped 0.23%, both set for rare weekly rises.

Hong Kong stocks reacted more sensitively to U.S. rate changes than their Chinese counterparts, due to regulatory capital controls in China. Sectors that benefit from lower rates, including real estate and tech, saw gains. While the Fed's rate cut benefits Chinese assets, the stability of the A-share market will depend primarily on economic fundamentals.

(With inputs from agencies.)