Chinese stocks decline as investors turn cautious

Shanghai stocks declined for more than 1 percent on Friday as investors took their cues from weakness in other markets.

The benchmark Shanghai Composite Index fell 1.06 percent to close at 2,808.53 points. For the week, the gauge also dropped 1.06 percent.

The smaller Shenzhen index was down 1.33 percent to 10,423.46 points and the blue chip CSI300 Index closed 0.86 percent lower at 3,796.97 points.

The ChiNext Composite index was weaker by 1.27 percent to 2,003.75 points.

Shares across Asian markets mostly fell on Friday as investors turned cautious due to the rapid worldwide spread of COVID-19. Japan’s Topix index retreated 0.33 percent at close while South Korea’s Kospi was down 1.34 percent.

Turnover on the two major bourses added up to 625.2 billion yuan (US$88.3 billion), a decrease from 670.6 billion yuan the previous trading day. Turnover on the Shanghai Stock Exchange was 244.1 billion yuan, a decline from the previous trading day’s 262.87 billion yuan.

Mining, consumer and pharmaceutical shares were among the biggest decliners on the A-share market on Friday. 

Guotai Junan Securities said that investors were also wary of uncertain news developments over the weekend.

Raisecom Technology Co Ltd dropped 9.92 percent to 11.8 yuan and Shanghai Flyco Electrical Appliance Co Ltd fell 8 percent to 34.96 yuan.