For the shortened week, CSI300 declined 2.5 per cent, while SSEC dipped 0.8 per cent.
The tech-heavy start-up board ChiNext dropped 3.5 per cent, having lost 5.9 per cent for the week.
Analysts remain cautious for the time being, citing a lack of factors for any upside momentum, and noting lofty valuations in some parts of the market.
Investors need to watch more and take less action now, as the pressure is mounting for a short-term correction in the main board, said Yan Kaiwen, an analyst with China Fortune Securities.
AVIC Securities noted in a report that valuations of equities are under pressure as China is tightening its monetary, credit and fiscal policies.
The brokerage added that China would continue to maintain policy stability as the latest Politburo meeting refrained from mentioning stabilizing leverage and commodities prices.
Tensions between China and the West have become another point of concern for investors.
Bucking the broad retreat, banking and materials stocks gained ground due to data pointing to China’s solid economic recovery.
The CSI300 banks index and the CSI300 materials index rose 1.1 per cent and 1.8 per cent on Friday.
China’s export growth unexpectedly accelerated in April as the brisk U.S. recovery and stalled factory production in other countries hit by the coronavirus propped up demand for goods made in the world’s second-largest economy.
China’s services sector expanded at the sharpest pace in four months in April, driven by fast growing new businesses, a private survey showed on Friday, although surging costs are likely to weigh on growth over the coming months.
Business News Governmental News Finance News
Need Your Help Today. Your $1 can change life.