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

China stocks fell in ​thin trading on Friday, ahead of ​a week-long holiday, while Hong ‌Kong shares sank ​following a tech-led selloff on Wall Street. ** China's blue-chip CSI300 Index and the Shanghai Composite Index ended down ‌1.3%. ** In Hong Kong, Hang Seng dropped 1.7% to a one-week low. ** Many have left trading rooms for the nine-day Chinese Lunar New Year festival kicking off on February 15. ‌Mainland markets will be shut next week, while Hong Kong will be closed from Tuesday ‌to Thursday. ** Trading typically thins ahead of the Spring Festival holiday, but China's 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.