China and Hong Kong Stocks Steady Amid Economic Uncertainty

China and Hong Kong stocks steadied on Friday following a slump, as authorities took measures to calm investors upset by economic concerns. The market faces a significant weekly loss despite efforts, including a swap facility operation by China's central bank and proposed technological export restrictions.

China and Hong Kong stock markets steadied on Friday after a significant slump the previous session. Authorities took decisive actions to reassure investors mired in concerns about China's economy and a looming trade war with the U.S.

Despite these efforts, the Chinese market is posed to record its largest weekly loss in nearly a year, reflecting persistent sentiment declines amid a scarcity of new policy stimuli ahead of Donald Trump's presidential inauguration. By midday, China's blue-chip CSI300 Index was virtually unchanged, while the Shanghai Composite Index dropped 0.5%. The benchmarks are predicted to slide over 4% for the week.

In response to mounting investor anxiety, China's securities regulator promised to crack down on rumor-mongering affecting the markets. Moreover, China's central bank conducted a second round of swap facility operation, injecting 55 billion yuan ($7.53 billion) into the stock market. The central bank also indicated potential interest rate cuts in 2025, while new government export restrictions regarding certain technologies hint at strategic gains from ongoing trade tensions.

(With inputs from agencies.)