Mainland and Hong Kong shares ended lower on Friday as a global selloff in technology shares and sharp losses in silver futures dampened investor sentiment.

The benchmark Hang Seng Index ended the day down 325 points, or 1.21 percent, at 26,559, logging its worst weekly performance since November with losses amounting to 3.02 percent.

The China enterprises index was down almost 62 points, or 0.68 percent, at 9,031 while the tech index was down almost 60 points, or 1.11 percent, at 5,346.

The benchmark Shanghai Composite Index closed down 10 points, or 0.25 percent, at 4,065.

Up north, the Shenzhen Component Index closed 45 points, or 0.33 percent, lower at 13,906 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 23 points, or 0.73 percent, down at 3,236.

The blue-chip CSI300 index lost 0.57 percent.

For the week, it's down 1.33 percent while the losses for the Shanghai benchmark was 1.27 percent.

Losses in tech were tracking their global peers.

Shares of US software and data services companies extended their tumble ⁠for a seventh straight session on Thursday as investors worried that fast-advancing artificial intelligence tools could upend the sector.

"Looking ahead to 2026, equity markets appear poised to navigate a more complex investment regime defined by diversification, valuation discipline and geopolitical realities," said Bob Savage, head of markets macro strategy at BNY.

"AI will remain a structural growth driver, but investor focus is shifting from broad-based enthusiasm toward differentiated business models, capital efficiency and defensible revenue streams."

Gold prices stabilised and helped some non-ferrous metal shares pare losses, while prices of Shanghai-traded silver futures closed down about 14.02 percent.

China's sole silver futures fund slumped by its 10 percent daily limit on Friday, its sixth straight session of decline, after a global selloff in precious metals wiped out significant investor gains.

Hong Kong's Hang Seng materials index dropped 1.17 percent, with ⁠China's CSI SWS non-ferrous metal index bouncing 0.37 percent.

Much of the attention will shift to China's January inflation data due on Wednesday, as recent gold price volatility could contribute significantly to consumer inflation, traders and analysts said.

"The effect on core CPI depends on jewellery's proportion in the basket and changes in landed prices," said Xing Zhaopeng, senior China strategist at ANZ.

"In countries like India, Indonesia and mainland China, jewellery accounts for over one percent of the core basket – the highest in the region." (Reuters/Xinhua)