SHANGHAI, June 25 (Reuters) - China stocks jumped on Friday to snap three straight weekly losses, powered by gains in heavyweight financial firms.
** The blue-chip CSI300 index rose 1.6% to 5,239.97, while the Shanghai Composite Index advanced 1.2% to 3,607.56.
** Financial firms underpinned the market, with the CSI300 financials index jumping 1.7%.
** The CSI SWS securities index rose 3.1%, as Guangdong Golden Dragon Development Inc, BOC International China and East Money Information Co Ltd advanced between 7.2% and 10%.
** The golden era for Chinese residents to boost equities has arrived, leading to a long-term upbeat cycle for securities firms, SWS Research said in a report.
** Residents’ wealth migration to equities assets are accelerating as other competitive wealth products’ returns continue to decline, SWS Research added.
** For the week, the CSI300 added 2.7% and the SSEC gained 2.3%, both ending a three-week losing streak.
** The weekly gains come as Federal Reserve Chair Jerome Powell reaffirmed that the U.S. central bank would not raise interest rates too quickly based only on the fear of coming inflation.
** “We see declining impact from currency and commodity price moves, while near-term liquidity support by PBOC could mitigate concerns over macro weakness and rising yield expectation,” Morgan Stanley analysts, including Laura Wang, said in a report.
** Investor reaction to latest headlines on Sino-U.S. tensions was largely muted this week.
** The U.S. House of Representatives Foreign Affairs Committee has scheduled a meeting on Wednesday to consider sweeping legislation to boost economic competitiveness and push Beijing on human rights, part of an ongoing effort in Congress to address competition with China.
** On Thursday, the Biden administration it banned U.S. imports of a key solar panel material from China-based Hoshine Silicon Industry Co, but stopped short of imposing a ban on all imports of silica from Xinjiang and said the action would not harm U.S. clean energy goals. (Reporting by Shanghai Newsroom; Editing by Aditya Soni)