For the week, CSI300 lost 0.9%, while SSEC was down 0.8%. China cut its new one-year benchmark lending rate for the second month in a row on Friday, a step by the central bank to try to wrestle down borrowing costs and support the economy as the Sino-US trade war drags on. But the move was far more cautious than easing by the US Federal Reserve and the European Central Bank over the past week, suggesting Chinese policymakers remain reluctant to join a global stimulus wave due to worries about mounting debt.
"Since the new rate is relatively untested, the PBOC (People's Bank of China) appears to be taking a measured approach at first," Julian Evans-Pritchard, senior China economist at Capital Economics, said in a note.
The widely anticipated cut came after China maintained a key 1-year money market rate unchanged, indicating Beijing's reluctance to flood the banking system with excessive liquidity.
Investors also eyed Sino-US trade talks, though analysts expect a limited impact from it on the A-share market ahead of the 70th anniversary of the founding of China due to Beijing's inclination to maintain stability in financial markets ahead of such significant events.
Helping underpin the market were robust continued foreign funds, which marked their 16th session of net inflows into the A-share market via the Stock Connect linking Hong Kong and the mainland, according to Refinitiv data.
"It's natural for global investors to have proper exposure to equities in China as Beijing further opens up its financial markets," said Yan Kaiwen, an analyst with China Fortune Securities. The northbound net flows via the Stock Connect on Friday alone reached 18.5 billion yuan ($2.61 billion).