SHANGHAI, March 31 Shanghai stocks snapped a
four-session losing streak on Friday but still posted their
biggest weekly loss since mid-December as concerns over tighter
liquidity and curbs on property investment dampened investors'
The blue-chip CSI300 index rose 0.6 percent to
3,456.05 points, while the Shanghai Composite Index
gained 0.4 percent to 3,222.51.
For the week, the CSI was down 1 percent, while SSEC sank
1.4 percent. For the month, the CSI was down 0.1 pct, while SSEC
shed 0.6 pct.
China fund managers recommend reducing equity exposure for
the next three months as worries including tighter liquidity
remain, even as fresh data indicated the economy is steadying
and improving, a monthly Reuters poll showed.
Earlier on Friday, the central bank skipped open market
operations for the sixth straight session.
For the week, the central bank drained a net 290 billion
yuan ($42.08 billion), compared with a net injection of 80
billion yuan a week earlier.
The cost of borrowing short-term cash against bonds at the
nation's stock exchanges more than tripled to as much as 32
percent on Thursday as smaller financial institutions scrambled
for funds before a central bank health-check on the banking
The property market was another area of concern as an
increasing number of cities put additional curbs on home
purchases to cool heated prices.
A government think tank urged authorities to guard against
risks in the property and financial sectors by properly managing
monetary and land supply "floodgates", adding to worries about
more restrictions on property developers.
An index track the nation's major developers
slid 2.5 percent for the week, its worst week in three months.
($1 = 6.8912 Chinese yuan renminbi)
(Reporting by Luoyan Liu and John Ruwitch; Editing by Kim