Shanghai stocks bounced on Friday, but still posted a fifth straight week of losses amid lingering worries over economic growth and regulatory measures aimed at curbing risky lending and speculation. The blue-chip CSI300 index rose 0.9 percent, to 3,385.38 points, while the Shanghai Composite Index rose 0.7 percent to 3,083.51 points. For the week, CSI was up 0.1 percent, while SSEC lost 0.6 percent.
Economic data released for April showed trade growth slowed, and producer price inflation cooled more than expected in a sign manufacturing activity may be losing momentum along with other sectors of the economy. The data reinforced analysts' views that China's economic expansion is starting to moderate after a surprisingly strong start to the year. Worries over policy tightening and regulatory curbs also weighed on sentiment, as the official Xinhua News Agency published a series of editorials highlighting Beijing's concerted campaign to guard against financial risks.
Financial plays led gains on Friday, in particular bank stocks, whose index rallied 2.7 percent, having its best day in 14 months. China holds a summit for its "Belt and Road Initiative" this weekend. Beijing tends to pay special attention to keeping its financial markets stable during such events. The central bank did not inject liquidity through its open market operations on Friday, but did add funds through its medium term financing facility to ensure the economy was adequately funded while keeping a rein on shorter term funding that could be used for speculative purposes.