SHANGHAI: China stocks are on track to post their biggest weekly gain in three months on hopes of further policy easing, but they lost some steam on Friday after a leading analyst warned about increasingly volatility in a “bubbly” market.
The CSI300 index rose 0.1 percent to 3,842.53 points by midday, while the Shanghai Composite Index lost 0.2 percent, to 3,573.86 points. The CSI300 has gained 6.2 percent so far this week.
Hong Kong shares, which were up on Thursday after the U.S. central bank signalled it was not in a rush to raise interest rates, were also softer. The Hang Seng index dropped 0.3 percent, while the Hong Kong China Enterprises Index lost 0.1 percent.
Shenzhen’s Nasdaq-style ChiNext hit record highs, powered by Internet stocks, but blue chip stocks, including banks and energy, took a break after the recent rally.
ChiNext is up 47 percent this year and currently trades at 85 times companies’ earnings, while China’s main stock indexes have hit near seven-year highs.
