China stocks end at 7-month low as tech, property slump outweigh brokerages' gains

China stocks finished at seven-month lows on Friday, as sharp falls in technology and property shares outweighed gains in brokerages fuelled by consolidation bets.

The Shanghai Composite index closed down 0.81 per cent at 2,765.81 points, while the blue-chip CSI300 index ended 0.81 per cent lower at 3,231.35 points. Both recorded their lowest closing levels since Feb 5.

For the week, the SSEC lost 2.69 per cent, while the CSI300 slumped 2.71 per cent.

China's former central bank governor Yi Gang said the country should focus on fighting deflationary pressure as the economy struggles to lift off despite a raft of policy support measures.

The central bank hinted at more easing on Thursday, but investors interpreted the signal as official recognition of economic weakness.

On the day, the consumer staples sector ended down 0.97 per cent, the real estate index lost 1.45 per cent and the healthcare sub-index dropped 1.76 per cent.

Bucking the trend, brokerages jumped after Guotai Junan Securities agreed to acquire rival Haitong Securities fuelling expectations of further industry consolidations.

This includes potential deals between CICC and China Galaxy Securities as well as Citic Securities and China Securities, Hua Chuang Securities said in a note.

CICC's Shanghai-listed shares jumped as much as 8 per cent before finishing up 2.19 per cent. Galaxy Securities soared 10 per cent to hit a two-month high before easing to finish up 4.93 per cent.

The smaller Shenzhen index ended down 1.61 per cent and the start-up board ChiNext Composite index was weaker by 1.703 per cent.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.31 per cent, while Japan's Nikkei index closed down 0.72 per cent.

The Hong Kong market was suspended from trading due to super typhoon Yagi.