The Shanghai Composite fell 0.26% to close at 4,102 while the Shenzhen Component lost 0.18% to 14,281 on Friday, with mainland stocks declining for the fourth straight session as the early year rally lost momentum. Sentiment was weighed down by regulatory concerns after Beijing raised the minimum margin requirement for stock financing to 100% from 80%, effective Jan. 19, as part of broader efforts to curb excess risk in capital markets. Among notable decliners were Zhongji Innolight (-1.3%), TBEA Co (-2.7%), China Spacesat (-4.6%), China Aerospace (-4.2%) and Zijin Mining (-2%). Meanwhile, China’s central bank indicated it still has room to lower banks’ reserve requirements and cut key policy rates this year. For the week, the Shanghai index fell 0.45%, while the Shenzhen index gained 1.14%.
