China stocks slip ahead of holiday, Hong Kong shares down after Wall Street slide

China stocks drifted lower in thin trading ​on Friday ahead of a ​week-long holiday, while Hong Kong shares ‌sank as ​an overnight slide on Wall Street soured the sentiment. ** China's blue-chip CSI300 Index lost 0.8% by the lunch break, while ‌the Shanghai Composite Index fell 0.7%.

** In Hong Kong, Hang Seng dropped nearly 2% to a one-week low. ** Many have left trading rooms for the nine-day Chinese Lunar New Year festival ‌that starts on February 15. Mainland markets will be shut next week, while Hong ‌Kong will be closed from Tuesday.

** Trading typically thins ahead of the Spring Festival holiday, but the stock market has held "at a relatively high level" without pulling back, Topsperity Securities said in a report, concluding that ⁠a ​strengthening yuan is lending support. ** ⁠The yuan is set for its longest weekly winning streak in 13 years, aided by a weak ⁠dollar and resilient Chinese exports. ** China's consumer-related stocks rose as investors bet they will likely benefit ​from holiday spending. ** Chipmakers also gained as investors expect more Chinese breakthroughs in artificial ⁠intelligence. ** The mainland market was also anchored by signs of improvement in Sino-U.S. relations after the Trump administration ⁠shelved several ​key tech security measures aimed at Beijing ahead of an April meeting between the two countries' presidents. ** But sentiment in Hong Kong was spoiled after major ⁠U.S. stock indexes fell sharply on Thursday as technology shares slid and investors were cautious ahead ⁠of U.S. inflation ⁠data on Friday.

** Most sectors fell in Hong Kong. ** Material stocks tumbled as gold and silver prices slumped again. ** Energy stocks ‌also dropped ‌sharply as oil prices sank.