SHANGHAI May 12 Shanghai stocks bounced on
Friday, but still posted a fifth straight week of losses amid
lingering worries over economic growth and regulatory measures
aimed at curbing risky lending and speculation.
The blue-chip CSI300 index rose 0.9 percent, to
3,385.38 points, while the Shanghai Composite Index rose
0.7 percent to 3,083.51 points.
For the week, CSI was up 0.1 percent, while SSEC lost 0.6
Economic data released for April showed trade growth slowed,
and producer price inflation cooled more than expected in a sign
manufacturing activity may be losing momentum along with other
sectors of the economy.
The data reinforced analysts' views that China's economic
expansion is starting to moderate after a surprisingly strong
start to the year.
Worries over policy tightening and regulatory curbs also
weighed on sentiment, as the official Xinhua News Agency
published a series of editorials highlighting Beijing's
concerted campaign to guard against financial risks.
Financial plays led gains on Friday, in particular bank
stocks, whose index rallied 2.7 percent, having its
best day in 14 months.
China holds a summit for its "Belt and Road Initiative" this
weekend. Beijing tends to pay special attention to keeping its
financial markets stable during such events.
The central bank did not inject liquidity through its open
market operations on Friday, but did add funds through its
medium term financing facility to ensure the economy was
adequately funded while keeping a rein on shorter term funding
that could be used for speculative purposes.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Simon