China stocks end flat, post worst weekly fall in over 2 months on virus worries

SHANGHAI: China's major indexes ended little changed on Friday, but posted their worst weekly decline since mid-July as a resurgence in COVID-19 cases globally raised concerns about the pace of economic recovery.

The blue-chip CSI300 index rose 0.2pc, to 4,570.02, while the Shanghai Composite Index slipped 0.1pcto 3,219.42.

For the week, the CSI300 shed 3.5pc, while SSEC lost 3.6pc, both logging their steepest weekly declines since the week ended July 17.

The tech-heavy start-up board ChiNext gained 0.2pc on Friday, while the STAR50 index retreated 2.2pc. They fell 2.1pc and 2.8pc for the week, respectively.

The recent slump in overseas equities on virus worries pressured the A-share market, while investors tend to tread cautiously ahead of the week-long National Day Holiday, said Zhang Chengyu, vice general manager of Beijing-based Shiji Hongfan Asset Management Co.

Britain recorded its highest number of daily COVID-19 cases on Thursday, reflecting a second wave of the virus hitting the country, while Mexico is close to surpassing 75,000 confirmed coronavirus deaths.

Geopolitical tensions, including ones on the Sino-Indian border and in the Taiwan Strait, also worried investors, Zhang added.

Taiwan's air force scrambled jets last week as multiple Chinese aircraft approached the island and crossed the sensitive midline of the Taiwan Strait, with the island's government urging Beijing to "pull back from the edge."

There was muted reaction from equities investors after FTSE Russell said it will add Chinese government bonds to its flagship World Government Bond Index.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 2.15pc, while Japan's Nikkei index closed up 0.51pc.

At 07:11 GMT, the yuan was quoted at 6.8175 per US dollar, 0.15pc firmer than the previous close of 6.8275.