INSUBCONTINENT EXCLUSIVE:
China stocks slipped on Friday, but finished the first week of a new decade higher with a five-week winning streak as Beijing eased monetary
policy to shore up the economy even as investors cheered a thaw in Sino-US trade tensions.
The blue-chip CSI300 index fell 0.2 per cent to
4,144.96, while the Shanghai Composite Index slipped 0.1 per cent to 3,083.79.
For the week, CSI300 was up 3.1 per cent, while SSEC advanced
2.6 per cent, both logging fifth week of gains in a row.
On the trade front, investors were expecting a signing of a Phase 1 trade deal
between China and the US on Jan
15.
The market got another lift from Beijing's latest policy support for the economy going into the new year.
China's central bank said on
Wednesday it was cutting the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.76 billion) in
funds to shore up the slowing economy.
The People's Bank of China has now cut the banks' reserve requirement ratio (RRR) eight times since
early 2018 to free up more funds for banks to lend as economic growth slows to the weakest pace in nearly 30 years.
Analysts say Beijing's
latest RRR cut would help spur its real economy, providing solid foundation for further rally in the world's second largest equities
market.
Reuters reported on Friday that China has decided to keep its inflation target unchanged this year at around 3 per cent, suggesting
policymakers will continue to roll out economic stimulus gradually and avoid more aggressive measures.
On the other hand, there were signs
of disappointing growth estimates hurting sentiment and denting stock prices, as companies started to publish annual estimates for 2019 and
2020.
The world's most valuable liquor maker Kweichow Moutai slumped 4.6 per cent to a near four-month low, extending its sharp correction
from Thursday, after the consumer giant forecast full-year profit below estimates.
There could be other blue-chip companies whose earnings
estimates might let investors down, China Fortune Securities' analyst Yan Kaiwen said.
Around the region, MSCI's Asia ex-Japan stock index
was weaker by 0.15 per cent.
The yuan was quoted at 6.9726 per US dollar, 0.12 per cent weaker than the previous close of 6.9643.
As of
07:04 GMT, China's A-shares were trading at a premium of 26.46 per cent over the Hong Kong-listed H-shares