(Updates to the close)

SHANGHAI, March 20 (Reuters) - Mainland China shares

ended lower on Friday, logging their biggest weekly drop since

November, as the Middle East war continued to weigh on investor

sentiment.

** The benchmark Shanghai Composite index closed

down 1.24%, the lowest closing level since December 24, 2025.

The blue-chip CSI300 Index fell 0.35%.

** For the week, SSEC plunged 3.4% and CSI300 lost 2.2%,

their worst since mid-November.

** Non-ferrous metal shares led the losses,

dropping 1.1% on Friday and 12.2% for the week. They were

pressured by a drop in gold prices following a firm U.S. dollar

and the U.S. Federal Reserve's hawkish tone, dampening hopes for

near-term interest rate cuts.

** China's central bank said it will fully leverage its

financial tools to "resolutely safeguard the stable operations

of stock, bond, foreign exchange and other financial markets,"

according to a statement on Thursday.

** Top central banks on Thursday said they stood ready to tackle

any inflation surge, as the Iran war put the Middle East's vital

energy infrastructure in the line of fire.

** Earlier in the session, China left its benchmark lending loan

prime rates for March unchanged for the 10th consecutive month.

** "With the Fed constrained in its easing cycle and the USD

remaining firm, the People's Bank of China faces a narrower

policy corridor, balancing domestic growth support with FX

stability," said Byron Lam, an economist at DBS.

** "Rising imported energy costs could further complicate

easing, as policymakers weigh growth support against imported

inflation risks."

** Meanwhile, photovoltaic shares outperformed,

jumping 2.9% after Tesla was reported to be seeking to

buy $2.9 billion worth of equipment from Chinese suppliers.

** Hong Kong benchmark Hang Seng Index slipped 0.88%,

while the city's tech shares lost 2.48%.

** Alibaba Hong Kong shares plunged to the lowest

level since August, after its third-quarter results missed

analysts' expectations, as heavy spending on one-hour delivery

and promotions during peak shopping periods failed to spur

demand.