Mainland and Hong Kong stocks closed down on Friday, but ended the week with modest gains, as investors largely brushed off concerns over a global technology selloff potentially impacting Chinese markets.

The benchmark Hang Seng Index was 244 points, or 0.92 percent, down at 26,241, the Hang Seng China Enterprises Index lost 0.94 percent to end at 9,267, and the Hang Seng Tech Index slumped 1.8 percent to 5,837.

Up north, the benchmark Shanghai Composite Index was down 0.25 percent at 3,997 while the Shenzhen Component Index closed 0.36 percent lower at 13,404.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.51 percent to close at 3,208.

The combined turnover of these two indexes stood at nearly two trillion yuan, down from 2.06 trillion yuan on Thursday.

Shares related to organic silicon and lithium mines led gains while those related to computers and transportation equipment suffered major losses.

China's CSI300 finished 0.3 percent lower, with the blue-chip index and its Hong Kong counterpart up around one percent for the week.

In contrast, tech-heavy stock markets in the United States and other parts of Asia were bracing for their heaviest weekly falls in seven months, as investors have turned uneasy about how far the rally in artificial intelligence stocks has run.

Foreign institutional investors added further positions in Chinese equities in the third quarter with their underweight reduced from minus 1.6 percent to minus 1.3 percent, UBS analysts said in a note.

The top 40 global investors' Chinese equity holdings rose to the highest level since the first quarter of 2023, they said.

China's tech-focused Star50 Index was roughly flat this week.

The Trump administration said on Thursday it would pursue negotiations with China over its dominance of ship building and ocean logistics as it formalised plans for a one-year pause on US port fees on China-linked vessels as part of a broader deal to reduce trade tensions.

Onshore semiconductor shares were down 1.3 percent after media reported the White House has told others in the federal government it won't allow Nvidia to sell its latest scaled-down AI chips to China. (Reuters/Xinhua)