China shares end lower, log biggest weekly drop since November
SHANGHAI, March 20 (Reuters) - Mainland China shares ended lower on Friday, logging their biggest weekly drop since November, as the Middle East war continued to weigh on investor sentiment.
The benchmark Shanghai Composite index .SSEC closed down 1.24%, the lowest closing level since December 24, 2025. The blue-chip CSI300 Index .CSI300 fell 0.35%.
For the week, SSEC plunged 3.4% and CSI300 lost 2.2%, their worst since mid-November.
Non-ferrous metal shares .CSI000811 led the losses, dropping 1.1% on Friday and 12.2% for the week. They were pressured by a drop in gold prices following a firm U.S. dollar and the U.S. Federal Reserve's hawkish tone, dampening hopes for near-term interest rate cuts.
China's central bank said it will fully leverage its financial tools to "resolutely safeguard the stable operations of stock, bond, foreign exchange and other financial markets," according to a statement on Thursday.
Top central banks on Thursday said they stood ready to tackle any inflation surge, as the Iran war put the Middle East's vital energy infrastructure in the line of fire.
Earlier in the session, China left its benchmark lending loan prime rates for March unchanged for the 10th consecutive month.
"With the Fed constrained in its easing cycle and the USD remaining firm, the People's Bank of China faces a narrower policy corridor, balancing domestic growth support with FX stability," said Byron Lam, an economist at DBS.
"Rising imported energy costs could further complicate easing, as policymakers weigh growth support against imported inflation risks."
Meanwhile, photovoltaic shares .CSI931151 outperformed, jumping 2.9% after Tesla TSLA.O was reported to be seeking to buy $2.9 billion worth of equipment from Chinese suppliers.
Hong Kong benchmark Hang Seng Index .HSI slipped 0.88%, while the city's tech shares .HSTECH lost 2.48%.
Alibaba 9988.HK Hong Kong shares plunged to the lowest level since August, after its third-quarter results missed analysts' expectations, as heavy spending on one-hour delivery and promotions during peak shopping periods failed to spur demand.
