Market gains also supported by spurring expectations that the People's Bank of China to take additional steps to boost its economy by making its biggest cash injection via medium-term loans this year or by reducing banks' reserve requirement ratio as Beijing's strict Covid curbs continue to weigh.
Most of market pundit expects PBoC to offer 1 trillion yuan one-year medium-term lending facility on Tuesday, matching the amount maturing this month, or lower banks' reserve requirement ratio to aid the economy.
At close of trade, the benchmark Shanghai Composite Index surged 1.68%, or 51.16 points, to 3,087.29. The Shenzhen Composite Index, which tracks stocks on China's second exchange, spurted 1.31%, or 26.13 points, to 2,017.96. The blue-chip CSI300 index increased 2.79%, or 102.75 points, to 3,788.44.
ECONOMIC NEWS: Chinese banks extended 615.2 billion yuan ($84.86 billion) in new yuan loans in October, about a quarter of the 2.47 trillion yuan in September, data released by the People's Bank of China showed on Thursday, as COVID-19 outbreaks and a property sector downturn weighed on credit demand.
CURRENCY NEWS: China's yuan appreciated against the dollar on Friday, inline with firmer midpoint fixing by China's central bank and expectations for slower Federal Reserve interest rate hikes. Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.1907 per dollar, 515 pips or 0.7% firmer than the previous fix 7.2422. In the spot market, the onshore yuan opened at a more than two-week high of 7.1600 per dollar before changing hands at 7.1710 by midday, 135 pips firmer than the previous late session close.
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