Chinese shares extended their losses on Friday, driven by reports that the central bank is considering cutting interest rates later this year.

The Shanghai Composite Index slipped 1.6%, or 51.13 points, to cap the trading week at 3,211.43. The Shenzhen Component Index lost 1.9%, or 190.94 points, to 9,897.12.

The People's Bank of China (PBOC) signaled its intention to potentially lower key rates "at an appropriate time" from the current 1.5% level, the Financial Times reported.

In corporate news, two companies recorded gains at the close of their trading debut.

Rare earth magnet materials maker Baotou Tianhe Magnetics Technology (SHA:603072) surged 290% after its shares closed on the Shanghai bourse at 48 yuan apiece versus its IPO price of 12.30 yuan per share.

HuangShan Googe (SHE:301581) soared 155% from its initial public offering price of 27.50 yuan per share to 70.01 yuan on the Shenzhen bourse.