China stocks rebound

China stocks bounced back from a more than four-year low on Friday, closing the week higher, as the government said it would cut banks' reserve requirement ratios and as optimism about trade talks with the United States helped sooth investor nerves.
The blue-chip CSI300 index rose 2.4 percent to 3,035.87, while the Shanghai Composite Index closed up 2.0 percent at 2,514.87.
The benchmark Shanghai index briefly touched a more than four-year low just as the market opened.
For the week, CSI300 and SSEC were up 0.8 percent each, both snapping three consecutive weekly falls.
China will cut banks' reserve requirement ratios (RRRs), taxes and fees, Premier Li Keqiang said on Friday, as the world's second-largest economy shows further signs of cooling.
China and the United States will hold vice ministerial level trade talks in Beijing on Jan. 7-8, as the two sides look to end a dispute that is inflicting increasing pain on both economies and roiling global financial markets.
China's services sector extended its solid expansion in December, offering some cushion for the slowing economy, a private survey showed on Friday.
"We are strategically optimistic, as the A-shares market is in the midst of the final stage of the fifth round of bullish-bearish cycle, with the valuation(s) already touching bottom," Haitong Securities wrote in note.
In comparison with other global stock markets, the A-shares market has greater appeal, and as China has been developing equity financing to support industrial upgrading, residential asset allocation will be more focused on the stock market, the brokerage added.
On the mainland, sectors rallied strongly across the board, led by financial firms, in particular brokerage firms which are expected to benefit from a market rebound.
An index tracking major brokerage firms soared 6.6 percent, while the CSI China mainland banks index climbed 2 percent.
The largest percentage gainers in the main Shanghai Composite index were Pengqi Technology Development Co Ltd , up 10.11 percent, followed by Pengqi Technology Development Co Ltd, gaining 10.11 percent, and Southwest Securities Co Ltd, up by 10.11 percent.
The largest percentage losers in the Shanghai index were Nanjing Panda Electronics Co Ltd, down 8.82 percent, followed by Ningbo Joyson Electronic Corp, losing 6.89 percent, and GuangDong Super Telecom Co Ltd, down by 4.94 percent.
As of 07:03 GMT, China's A-shares were trading at a premium of 19.87 percent over the Hong Kong-listed H-shares.