China’s blue-chip index showed maximum weekly decline over 17 months

US, WASHINGTON (ORDO NEWS) — China stocks rose Friday after the recovery of other Asian markets, but the blue chip index showed the maximum weekly decline in 17 months amid continuing concerns about the economic damage from the outbreak of coronavirus.

The Shanghai Composite Index added 1.6% to 2.745.62 points.

The blue chip index CSI300 gained 1.8% to 3.653.22 points.

Over the week, the blue chip index slipped 6.2%, the largest weekly decline since October 2018, while the Shanghai Composite slowed 4.9% amid measures taken by countries to curb the outbreak and the fall business activity.

The People’s Bank of China on Friday left the basic lending rate unchanged, not meeting expectations for a decrease in the cost of borrowed funds in an economic downturn due to the consequences of the coronavirus pandemic. Therefore, the regulator is likely to soon have to cut lending rates in order to free up funds.

China could deploy trillion yuan fiscal stimulus measures to revive the economy, which is expected to contract for the first time in four decades against the backdrop of the coronavirus pandemic, while growth targets are likely to be lowered, four sources said.

The Hong Kong Hang Seng Index rose 5% to 22.805.07 points, while the Hang Seng China Enterprises Index rose 6.5% to 9.118.67 points.


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