SHANGHAI May 19 China's main stock indexes were
little changed on Friday but ended the week higher, with
Shanghai shares snapping a five-week losing streak, as soothing
regulatory comments and the central bank's injection offset
worries over tighter regulations and economic growth.
The blue-chip CSI300 index rose 0.2 percent, to
3,403.85 points, while the Shanghai Composite Index
ended flat at 3,090.63 points.
For the week, CSI300 was up 0.5 percent, while SSEC added
Over the weekend, Premier Li Keqiang said China would strike
a balance between financial stability, gradual deleveraging, and
steady economic growth, noting the government was capable of
maintaining stability in the financial markets.
The market had posted five consecutive weeks of declines on
concerns over Beijing's stepped-up campaign against shadow
banking and that efforts to de-leverage could sap liquidity and
hurt the economy.
In an apparent effort to settle market nerves, China's
banking regulator said risks in the banking sector were
completely controllable, and the market did not have to be
nervous of scrutiny.
On Tuesday, China's central bank injected a net 170 billion
yuan ($24.67 billion) into money market through open market
operations - the most in nearly four months - to offset
liquidity stress caused by corporate tax payments and maturing
repos, indicating Beijing's intention to maintain market
stability amid widespread concerns over policy tightening.
However, according to most analysts Reuters spoke to, market
sentiment remains fragile and investors are expected to be
cautious, with some saying de-leveraging remains the direction
of Beijing's policy despite soothing regulatory rhetoric.
Investors are also worried that China's economy could
witness renewed slowdown as a recovery - triggered mainly by
government stimulus - peters out, said Yang Hai, strategist at
Indeed, an official survey published this week showed
Chinese stock investors' confidence fell for a second straight
month in April, to the lowest in seven months, dented by
For the week, consumer stocks outperformed among main
sectors, with the index tracking those stocks
rallying 4.7 percent in its best week in 10 months, while
banking stocks dragged the most.
($1 = 6.8921 Chinese yuan)
(Reporting by Luoyan Liu and John Ruwitch; Editing by