SHANGHAI Dec 16 China stocks edged higher on
Friday, but showed the biggest weekly fall in several months
reflecting tougher regulation of insurers, plus a yuan and bond
market sell-off after the Fed raised rates and hinted at more to
come quite soon.
The blue-chip CSI300 index rose 0.2 percent, to
3,346.03 points, while the Shanghai Composite Index also
added 0.2 percent to 3,122.98 points.
For the week, the CSI300 slumped 4.2 percent, its worst
since end-January, while the SSEC was down 3.4 percent, its
worst retreat in nearly eight months.
Stocks treaded carefully after regulators were reported to
take more measures against insurers.
China's insurance regulator has issued warnings to 10
companies after they failed to properly carry out
self-inspections on their risk levels, the Securities Daily
newspaper reported on Friday.
The insurance regulator was also contemplating a cut in the
single shareholder's maximum stake in an insurance company to
less than one third from 51 pct, the Securities Daily said.
Investors found some solace from the bond market. China's
10-year treasury futures rebounded 1.33 percent on
Friday after Thursday's panicky sell-off in response to the
Federal Reserve's rate hike.
Sectors were mixed. Infrastructure and
healthcare recovered some losses early this week,
while banks and materials continued to
lag on the dollar's strength.
Start-up stocks outperformed, with the tech-heavy index
rallied 1.2 percent.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Eric