2 Min Read
SHANGHAI, Dec 16 (Reuters) - China stocks edged higher on Friday, but showed the biggest weekly fall in several months reflecting tougher regulation of insurers, plus a yuan and bond market sell-off after the Fed raised rates and hinted at more to come quite soon.
The blue-chip CSI300 index rose 0.2 percent, to 3,346.03 points, while the Shanghai Composite Index also added 0.2 percent to 3,122.98 points.
For the week, the CSI300 slumped 4.2 percent, its worst since end-January, while the SSEC was down 3.4 percent, its worst retreat in nearly eight months.
Stocks treaded carefully after regulators were reported to take more measures against insurers.
China's insurance regulator has issued warnings to 10 companies after they failed to properly carry out self-inspections on their risk levels, the Securities Daily newspaper reported on Friday.
The insurance regulator was also contemplating a cut in the single shareholder's maximum stake in an insurance company to less than one third from 51 pct, the Securities Daily said.
Investors found some solace from the bond market. China's 10-year treasury futures rebounded 1.33 percent on Friday after Thursday's panicky sell-off in response to the Federal Reserve's rate hike.
Sectors were mixed. Infrastructure and healthcare recovered some losses early this week, while banks and materials continued to lag on the dollar's strength.
Start-up stocks outperformed, with the tech-heavy index rallied 1.2 percent. (Reporting by Luoyan Liu and John Ruwitch; Editing by Eric Meijer)