SHANGHAI Feb 24 China stocks were largely
unchanged on Friday, reversing earlier losses, as reform hopes
underpinned the market, with the main indexes up for the third
straight week thanks to improving risk appetite.
The blue-chip CSI300 index was unchanged at
3,473.85 points, while the Shanghai Composite Index
added 0.1 percent to 3,253.43 points.
For the week, CSI300 gained 1.5 percent, while SSEC climbed
The main indexes dropped for most of the day as resources
shares dragged, but reversed losses in the afternoon after
centrally-owned state companies jumped on reform hopes, with
China United Network Communications advancing 8.1
percent to a 6-week high.
The director of China's state assets regulator Xiao Yaqing
said on Friday that the country should further deepen
mixed-ownership and supply-side reforms, the official Shanghai
Securities News reported.
"Market sentiment remains optimistic and the upward trend is
not yet broken," said Wu Kan, head of equity trading at Shanshan
"The upcoming National People's Congress, and the
first-quarter earnings season will keep investors excited."
Reflecting rising risk appetite, China's outstanding margin
loans have risen for four consecutive days to exceed 900 billion
yuan ($131.00 billion), as investors appear more willing to use
borrowed money to buy stocks.
Banks fell 0.3 percent, as news of Guo Shuqing,
governor of China's eastern Shandong province, becoming China's
new top banking regulator added to uncertainty to a sector
facing increasing deleveraging pressure.
Sector performance was mixed. Losses were led by material
stocks, while transport plays stood
out with a 1.8 percent gain.
S.F. Holding, founded by billionaire
entrepreneur Wang Wei, surged by the 10 percent trade limit to a
near four-month high, surpassing China Vanke and
Midea Group to become the largest stock by market
value on Shenzhen Stock Exchange.
($1 = 6.8700 Chinese yuan renminbi)
(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri