The CSI300 of the top Shanghai and Shenzhen closed down 0.5 percent on Friday, but rose 0.7 percent on the week to 2,372 points. The Shanghai Composite Index shed 0.7 percent on Friday but inched up 0.1 percent this week.
Chinese banking and energy majors were among the biggest losers; Industrial and Commercial Bank of China (ICBC) dived 2.1 percent, while China Coal Energy fell more than 2 percent. CNOOC, Petrochina and Sinopec all fell 1.2 percent.
Hong Kong shares posted their worst day in three weeks and their first weekly loss in five, as investors cut risk at the end of the last full trading week this year after talks stalled on a deal to avert a fiscal crisis in the United States.
The Hang Seng Index closed down 0.7 percent on the day and down 0.4 percent on the week at 22,506.3. The China Enterprises Index of the top Chinese listings in Hong Kong shed 1.1 percent on Friday and 0.7 percent this week.
Low turnover and strength in defensive plays such as Hong Kong utilities further pointed to risk aversion at the end of the last full trading week in 2012. Next week, Hong Kong markets will shut from noon on Monday and resume trading only on Thursday.
Anta Sports jumped 3 percent to HK$6.54 after UBS raised their price target from HK$7.50 to HK$9, expecting Anta to be among the survivors of an ongoing consolidation in Chinese sportswear brands.
Seoul shares ended down on Friday to post their first weekly loss in five weeks after U.S. House Speaker John Boehner abandoned his "fiscal cliff" plan, muddying the outlook for a deal aimed at averting a recession.
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The Korea Composite Stock Price Index fell nearly 1 percent to 1,980.4 points.