Blue-chips lead China stocks to best week in six months

SHANGHAI: China's leading share index capped its best week in nearly 6 months on Friday as investors continued to scoop up blue-chips on signs that the economy is on steadier footing.

The CSI300 index rose for a fifth straight day, advancing 0.9 per cent to 3,521.30 points, its highest in nearly 11 months.

Also reflecting growing investor confidence, the Shanghai Composite Index shook off a near 1 per cent drop in morning trade and ended up 0.6 per cent at 3,261.94 points.


For the week, the CSI300 rose 3 per cent, while the SSEC gained 2.2 per cent, its best week since mid-November.

With the economy showing signs of stabilization, and even some recovery in certain sectors, a growing number of brokerages are starting to turn optimistic, predicting further market gains.

Analysts say China's stock market is becoming increasingly attractive to yield-seeking investors, such as insurers, amid the backdrop of growing curbs on the housing market, a fragile bond market and high volatility in the futures market.

Such optimism has emboldened stock punters to boost their leveraged bets.

Outstanding margin financing - money investors borrow to buy stocks - jumped to over 956 billion yuan ($138.27 billion) this week, up 50 billion yuan from end-October, and the highest level since December, 2015.

Most sectors gained ground, led by properties and banks.