Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 1.24 percent to 3,812.51 points.
The Shenzhen Component Index closed 3.89 percent higher at 12,590.56 points, while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 6.55 percent to close at 2,958.18 points.
China Global Television Network (CGTN) market analyst Timothy Pope highlighted these trends in his recap of China's stock market performance this week.
"It has been a pretty wild week for Chinese Mainland markets. Thursday, of course, saw a sharp correction -- the worst day on the markets in about five months. But that didn't carry over to today. The Shanghai Composite Index was up [about] 1.25 percent. The Shenzhen Component added almost 4 percent. The stocks causing the big swings actually were largely tech stocks. We saw chip makers in particular, like the bellwether Cambricon, having logged some really astonishing gains over the past couple of months. I mean, Cambricon stock price doubled in August and that sort of meant that some profit taking, a bit of a correction, was probably due," said Pope.
"There was some calm returning to the markets with the PBOC announcing what amounts to a big liquidity injection into the money markets. Of course, liquidity has been fueling a lot of this recent rally. But the volatility and the profit taking haven't really changed the overall trajectory of the A-share markets. They are still rising. And it might actually be that the dip this week has acted as a bit of a release valve for some stocks, which had become a little bit overheated in the last couple of months," he added.
Analyst recaps fluctuating Chinese stock market performance this week
The "soft landing" of the China-EU electric vehicle case will greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment, a spokeswoman of the Ministry of Commerce (MOC) said at a press briefing in Beijing on Thursday.
He Yongqian, the spokeswoman, made the remarks after China and the European Union (EU) agreed on the necessity of providing general guidance on price undertakings for Chinese companies exporting battery electric vehicle (BEV) passenger cars to the EU.
"China and the EU simultaneously announced on Monday that they had achieved positive outcomes following multiple rounds of consultations on the EV case, a development that has drawn wide attention at home and abroad. Industry players from both sides have 'highly welcomed and fully endorsed' the outcome, saying the 'soft landing' of the case is expected to greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment. Some EU politicians have described it as a positive step toward building a sustainable China-EU trade relationship, and said it demonstrated that resolving trade differences through partnership remains feasible," she said.
"Against the current international backdrop, China and the EU, acting in a spirit of mutual respect and within the framework of WTO rules, have properly addressed the EV case, which is of significant positive importance. The outcome will not only contribute to the sound development of China-EU economic and trade ties and help safeguard the stability of the global automotive industrial and supply chains, but will also send a clear and strong signal that both sides are willing to uphold a rules-based international trading order, setting a good example for countries to resolve differences through dialogue and consultation and injecting greater certainty and positive energy into global economic growth," she said.
"China appreciates the spirit of dialogue showed by the EU side and stands ready to work with the EU, building on the current positive outcomes, to further implement the consensus reached by the leaders of the two sides, maintain dialogue and communication, and support stable industrial and supply chains on both sides, continue to deepen cooperation on the basis of market principles, and make active contributions to the global green transition," she added.
"Soft landing" of China-EU EV case to significantly boost market confidence: MOC spokeswoman
"Soft landing" of China-EU EV case to significantly boost market confidence: MOC spokeswoman
