Update | Hong Kong stocks fall on Friday, posting the biggest weekly loss in two months

Hong Kong stocks posted their biggest weekly loss in two months on Friday, closing lower than the previous session. Mainland stocks rose for the first time this week, but still logged their steepest drop since December 2016.

The benchmark Hang Seng Index dipped 0.12 per cent, or 40.31 points, to 32,601.78 on Friday, extending Thursday’s 0.8 per cent decline. However, the Hang Seng China Enterprises Index, or the H-share gauge, rose 0.78 per cent as mainland stocks staged a V-shaped rebound in the afternoon.

“It’s just technical adjustment. The bull market in China is far from peaking,” Ji Mo, chief economist for Asia excluding Japan of Amundi Hong Kong, said on Friday.

Gaming stocks were the biggest losers after news broke that China is drafting rules to allow gambling on Hainan Island, a move that would end Macau’s lottery monopoly. Galaxy Entertainment Group dropped 2.01 per cent and MGM China Holdings lost 1.45 per cent, after both stocks recovered from as much as 5 per cent losses in the day.

Chinese telecom equipment maker ZTE Corporation rose 3.96 per cent to HK$27.60, thanks to preliminary results that showed the company has returned to profit after losing 2.36 billion yuan in 2016.

In mainland trading, the Shanghai Composite Index rebounded 0.44 per cent to 3,462.08, after a near 1 per cent decline during the morning session. The gauge lost 2.68 per cent this week, the steepest for the five-day period since December 2016.