Chinese main stock index ended little changed on Friday after testing lower. Most shares rebounded in late trade but heavily weighted banks and property stocks were weak. "Today's correction was expected, before the index establishes itself firmly above 3,100 to 3,200 points in late March," said Qian Hong, analyst at Galaxy Securities.
"Any correction should not go below 3,000 points, and a blue chip rally may help the index rise next quarter," said Yang Weidong, analyst at MF Securities. A day after it rose to a fresh all-time high, the Shanghai Composite Index ended up 0.10 percent at 3,074.286 points, after hitting a low of 3,008.154. Gainers outnumbered losers by 542 to 331.
Turnover in Shanghai A shares was heavy at 104.1 billion yuan ($13.5 billion), though it was down from 112.1 billion yuan on Thursday, when the index hit an all-time, intra-day high of 3,099.819 points. Many investors believe a fresh uptrend has formed but are also anxious about possible pull-backs due to profit-taking, with the index up 15 percent so far this year and 130 percent last year.
Official media on Friday quoted the chairman of China's securities regulator, Shang Fulin, as saying there were still many deep-rooted problems in China's capital markets, though the stock market was currently in a bull run. The comments added to the caution.
Baotou Steel rose 2.89 percent to 5.70 yuan, while Angang Steel surged 6.36 percent to 13.22 yuan in the biggest turnover since the start of January. Vanke, slipped 1.93 percent to 16.23 yuan. Poly Real Estate Group fell 3.22 percent to 52.33 yuan.
Pharmaceutical shares were strong, with Hangzhou Tianmushan Pharmaceutical up its 10 percent limit to 7.81 yuan. Most banks were weaker, after helping to lead the index higher during this week's four-session rally. Bank of China fell 0.76 percent to 5.20 yuan, despite reporting stronger-than-expected second-half profit on Thursday.
Shenzhen Development Bank was down 2.86 percent at 19.38 yuan. Shanghai Bailian Group Co Ltd, the listed arm of China's largest retailer, was up 0.72 percent at 13.92 yuan.