Mainland exchanges see weekly gain as investors welcome new stock plan

Stock markets in the Chinese mainland saw mixed performance on Friday but registered a weekly gain amid high expectations for the Shanghai-Hong Kong Stock Connect plan and the Silk Road initiative.

The benchmark Shanghai Composite Index nudged down by 6.78 points or 0.27 percent to 2,478.82 points on Friday, with a 2.52 percent gain from the previous Friday, November 7.

The Shenzhen Component Index inched up by 21.81 points or 0.26 percent to 8,326.90 points, ending the week with a 1.12 percent increase. Combined turnover on the two bourses on Friday was 343.46 billion yuan ($56.03 billion), down from the previous trading day's 456.69 billion yuan.

Last week, domestic stock markets hit three-year highs twice as investors welcomed the news of a new fund for infrastructure related to the Silk Road plan and the launch of the Shanghai-Hong Kong Stock Connect scheme.

On November 8, China announced a $40 billion development fund for the new Silk Road initiative to help boost investment in neighboring countries' infrastructure. The securities authorities also announced that the much-awaited Shanghai-Hong Kong Stock Connect would finally be launched on November 17.

Stocks linked to infrastructure and brokerages were among the best performers last week.

On Friday, nonferrous, steel, and oil companies weighed down on the markets, while pharmaceutical, real estate and liquor stocks rose.

Jiangsu Sihuan Bioengineering Co rose by 4.66 percent to 5.61 yuan and premium liquor maker Kweichow Moutai Co rose by 3.77 percent to 157.29 yuan.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups, ended down by 1.65 points or 0.11 percent at 1,441.21 points on Friday. The index plunged by 5.35 percent week-on-week, the biggest weekly decline since May.