SHANGHAI Aug 21 China's benchmark stock index
closed up 1.7 percent in rising volume on Friday, led by banks
after strong earnings reports, although they posted its third
weekly loss in a row.
Investors have cashed out of the highly valued market since
early August amid a wave of new share offers and weakness in
The Shanghai Composite Index .SSEC finished at 2,960.771
points on Friday, down 2.8 percent for the week.
Gaining Shanghai A shares outnumbered losers by 905 to 35,
while turnover for Shanghai A shares rose to 137.4 billion yuan
($20 billion) from Thursday's 121.7 billion yuan.
The index ended well above the five-day moving average, now
near 2,900 points, but analysts said it was still too early to
say the index had convincingly breached that closely watched
More battles between buyers and sellers are likely if the
index rises further next week and heads toward the 60-day moving
average, now just above 3,000, they said.
"The psychologically important 3,000 point level will be
crucial in the near term," said Zhang Xiang, chief strategist at
Guotai Junan Securities. "See-saw battles are still inevitable
next week as investor confidence needs time to recover."
He pointed to the index's dramatic 20 percent tumble in just
two weeks to Wednesday's close before its technical bounce on
Thursday and Friday.
On Friday, China's top lender Industrial & Commercial Bank of
China (601398.SS), the most active stock, closed up 2.32 percent
at 4.86 yuan after it posted forecast-beating second-quarter
(Reporting by Claire Zhang and Edmund Klamann; Writing by Lu