China stock indices rose on Friday dismissing coronavirus fears, supported by the hope that the government measures to curb the outbreak of coronavirus and easy economic stress will continue to support equity markets. The Shanghai Composite Index rose 0.4%. The blue chip index CSI300 gained 0.7% erasing almost 95% from the recent sell-off. As for the weekly gains, Shanghai Composite index has increased by 1.4%, CSI300 - by 2.3%.

The financial sector in CSI300 added 1.3% on Friday, while consumer goods producers rose 0.7%, and the real estate sector jumped 3.1%. The Hong Kong Hang Seng Index rose 0.3% to 27.815.60 points, while the Hang Seng China Enterprises Index also rose 0.3% to 10.863.45 points.

On Friday China reported more than 5,000 new cases of coronavirus infection, the outbreak of which does not yet show signs of approaching a peak. Meanwhile, passengers on a cruise ship, which, due to fears about the virus, had not been allowed in by five countries before, were able to land on Friday in Cambodia.

Expectations of easing monetary policy will continue to support stocks, even though disruptions in production will affect company earnings, according to a report from the brokerage company Shanxi Securities.

China's economy in the first quarter will grow by 4.5%, the slowest pace since the financial crisis, according to a survey of economists by Reuters. Nevertheless, experts believe that the decline will be short-term if the outbreak of the virus can be contained.

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