China: Stock index hits 7-year high as more funds move in

[SHANGHAI] China stocks jumped to fresh seven-year highs on Friday, with a four-day winning streak bringing the weekly gain to the biggest since December as investors raised bets that a month-long consolidation period is ending.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.3 per cent, to 4,951.33, while the Shanghai Composite Index gained 2.8 per cent, to 4,657.60 points.

For the week, CSI300 was up 7.2 per cent, while SSEC gained 8.1 per cent, their biggest weekly rises since the start of December.

Sector rotation was obvious on Friday, with financial stocks , a recent underperformer, taking the lead. On the flip side, Shenzhen's start-up board ChiNext, which has been soaring, lost momentum and ended 0.6 per cent lower.

REUTERS