Mainland stocks weakened in choppy trading on Friday, as some investors took profit while awaiting planned talks between President Xi Jinping and his US counterpart Donald Trump.

In Hong Kong, the Hang Seng Index closed nearly unchanged at 26,545, up a mere 0.25 points.

The benchmark index is up 0.6 percent for the week for a third straight week of gains.

The Hang Seng China Enterprises Index edged up 0.17 percent to end at 9,472 while the Hang Seng Tech Index rose 0.37 percent to end at 6,294.

The benchmark Shanghai Composite Index ended down 0.3 percent at 3,820, pulling back from a 10-year high, while the Shenzhen Component Index closed 0.04 percent lower at 13,070. The Shanghai Composite index declined 1.3 percent this week, its worst performance since early April.

The combined turnover of these two indexes stood at 2.32 trillion yuan, down from 3.14 trillion yuan on Thursday.

Stocks related to lithium battery and lithography machine led gains while shares related to humanoid robot and innovative medicine saw notable declines.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.16 percent to close at 3,091.

The banking sector index and insurance sector led the losses for the week, down 4.2 percent and 4.4 percent respectively.

The semiconductor index registered a 6.5 percent weekly gain as fresh optimism over China's artificial intelligence developments continued to lift the sector.

Local chipmaker SMIC and peer Hua Hong rose 12 percent and 11 percent, respectively, for the week, as Huawei outlined chip and computing power plans, while China redirected its regulatory focus to Nvidia as leverage in the US trade talks.

Sentiment was cautious ahead of the scheduled high-level call between Xi and Trump later in the day, with discussions expected to cover the TikTok deal and tariffs.

"There is objectively some profit-taking pressure after the market's rapid short-term gains," analysts at Changjiang Securities said.

Still, the view that China's market is poised for a "slow bull" run remains intact, with more long-term capital and household savings entering the market, they added.

"We continue to expect stronger fund inflows into Chinese equities in the second half of the year, in line with our recent US marketing trip, which saw the highest level of investor interest in China since 2021," Morgan Stanley said. (Reuters/Xinhua)