<div id="readability-page-1"><div> China stocks dipped on Friday, pausing their rally as investors locked in gains ahead of a Politburo meeting expected to set economic policy for the rest of the year, though markets still registered a fifth straight weekly rise. ** The Shanghai Composite index fell 0.3% to 3,593.66, slipping from a 3-1/2-year high. China's blue-chip CSI300 index lost 0.5%.** Liquor distillers dropped 2% and consumer staples slid 1.7%, leading declines onshore. Offsetting some losses, the AI sector jumped 2.2% and semiconductor sector climbed 1.9%. ** Despite the day's pullback, the Shanghai Composite index has gained 1.7% so far this week to log its fifth straight weekly gain - its longest winning streak since the start of a rally that began in February 2024.** Beijing's latest efforts to curb excessive competition and overcapacity, and incremental signs of improving U.S.-China trade relations lifted sentiment.** Analysts at CLSA said institutional investors' overall risk appetite has improved significantly this month, though some remain unconvinced about a structural bull run and see more sector-specific opportunities.** Hong Kong's benchmark Hang Seng Index &lt;.HSI&gt; weakened 1.1% to 25,388.35 after closing at its highest since November 2021 on Thursday.** The Hang Seng Tech Index led declines, losing 1.2% on the day.** Market attention will be squarely on the Politburo meeting due later this month, given that it will likely shape economic policy for the rest of the year.** Chinese policymakers, concerned about local growth amid an ongoing trade war with the U.S., are unlikely to offer a big gun stimulus this time until there's more clarity on what's needed, said Keiko Kondo, Schroders' head of multi-assets for Asia, who is neutral on China equities.</div></div>

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China stocks paused their rally on Friday, with the Shanghai Composite index falling 0.3% to 3,593.66, while still achieving a fifth consecutive weekly gain. Investors are cautious ahead of an upcoming Politburo meeting expected to influence economic policy. Despite declines in liquor distillers and consumer staples, sectors like AI and semiconductors saw gains. Analysts noted improved risk appetite among institutional investors, though skepticism about a sustained bull run remains. The Hang Seng Index also weakened, reflecting market caution ahead of the meeting.

China stocks pause rally as investors eye Politburo meeting, but extend weekly gains streak