Flat end to the week for city stocks

Shanghai stocks closed generally flat on Friday but marked the fifth consecutive weekly drop amid escalating trade tensions between China and the US.

The benchmark Shanghai Composite Index edged up 0.02 percent to 2,852.99 points, while the smaller Shenzhen Component Index extended the loss by 0.37 percent to close at 8,776.77 points. The blue chip CSI300 index rose 0.28 percent to 3,593.91 points.

Total turnover on the two major bourses shrank sharply to 380.91 billion yuan (US$55.18 billion), compared with 464.62 billion yuan in the previous session.

The food and beverage industry led the rise, with Qinghai Huzhu Barley Wine Co surging by the daily limit of 10 percent and Jinzi Ham Co advancing by 6.3 percent.

The automobile sector, especially companies related to car-sharing, were also among the biggest gainers after the Ministry of Finance announced specific policies on vehicle purchase tax, which will take effect from July 1. Stocks of five A-share companies including Tianjin Faw Xiali Automobile Co and Yangzhou Asiastar Bus Co posted increases hitting the 10 percent daily cap. 

Financial shares, including banks and brokerages, home appliance firms and the electricity and utilities sector all performed well.

Stocks related to rare-earth minerals, however, tumbled, with the Wind Information's sub-index for the concept sector extending the drop by 6.38 percent on Friday. China Minmetals Rare Earth Co took a nosedive by the maximum 10 percent, and Rising Nonferrous Metals Share Co and China Northern Rare Earth (Group) High-Tech Co both shed over 7 percent.

Stocks of eight companies listed on the A-share markets in the semiconductor sector lost by over 9 percent, including Jiangsu Nata Opto-electronic Material Co and Hunan Goke Microelectronics Co.

The aviation and military industry, computer hardware companies, and agricultural shares all closed lower.

The Shanghai Composite Index posted a weekly loss of 1.02 percent to drop for five weeks in a row. The total turnover on the Shanghai bourse this week also continued to shrink — from 1.1 trillion yuan to 951.1 billion yuan.