Sentiment stays subdued on bourses

The sudden drop of some stocks sparked caution in the A-share market on Friday, with analysts saying China's financial tightening will curb speculative trading and continue to exert pressure on prices among smaller-cap stocks.

The CSI 300 Index, which tracks the top 300 stocks traded on the Shanghai and Shenzhen stock exchanges, slumped by 3 percent on Thursday, the biggest loss since June 2016. A total of 200 listed companies saw their share price tumble by the 10 percent daily trading limit.

While the market recovered some of the loss on Friday, with the benchmark Shanghai Composite Index rebounding by 0.44 percent, investors' sentiment remained fragile, especially toward companies with trust or asset management products as their top shareholders.