China stocks close higher, post biggest monthly loss since global crisis

Reuters Updated - January 19, 2018 at 07:29 PM.

China stocks rose more than 3 per cent on Friday, recovering losses at the end of a tumultuous week, having recorded their worst month since the global financial crisis.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen ended up 3.2 per cent, to 2,946.09, while the Shanghai Composite Index gained 3.1 per cent, to 2,737.60 points.

Both indexes tumbled over 20 per cent in January, their biggest monthly loss since the 2008-09 global financial crisis.

For the week, CSI300 was down 5.4 percent, while SSEC lost 6.1 percent.

Hong Kong stocks also bounced back, helped by stronger mainland and US stocks.

Hong Kong's Hang Seng index added 2.2 per cent to 19,621.28, while the Hong Kong China Enterprises Index gained 2.5 per cent to 8,234.09.

Investors drew some relief after the People's Bank of China, which has pumped out a huge 690 billion yuan this week to avoid a liquidity crunch ahead of the Lunar New Year celebrations, said it would conduct more liquidity operations than usual between January 29 and February 19.

"January's market decline exceeded our expectations," said a mutual fund manager in southern China, who declined to be identified.

"However, after such a big correction, there's relatively small room for further falls, while the chance of a rebound is increasing."

Stocks rose across the board in China and Hong Kong.

Published on January 29, 2016 07:31