SHANGHAI, Nov 20 (Reuters) - China stocks were steady on Friday as fresh easing steps by the central bank were offset by caution ahead of a flurry of listings and on uncertainty if the market’s sharp rebound from August lows could be sustained.
Chinese stocks have rebounded some 25 percent after plunging more than 40 percent from mid-June to August.
China’s blue-chip CSI300 index was flat at 3774.38 points, rising 0.8 percent for the week. The Shanghai Composite Index was 0.4 percent firmer, at 3630.50 points, registering a weekly gain of 1.4 percent.
Anxiety over the resumption of initial public offerings curbed optimism from fresh central bank moves to lower borrowing costs. Some analysts expect the 28 IPOs to hit the market by end-year will freeze about 3.5 trillion yuan ($548.5 billion) of capital.
The People’s Bank of China said late on Thursday that it would cut lending rates for loans made under the standing lending facility (SLF), a policy tool to inject cash into the banking system, in its latest effort to aid a struggling economy.
The easing helped push up prices of banking and real estate stocks on Friday, but many other sectors, including transport and healthcare retreated.
But defence stocks had a strong performance. The execution of a Chinese hostage by ISIS and international developments supporting the case for further military expenditure underpinned the sector. ($1 = 6.3806 Chinese yuan) (Reporting by Samuel Shen and Pete Sweeney; Editing by Shri Navaratnam)