China stocks slip but eye best week in five on stimulus hopes

China stocks slipped on Friday on bleak factory gate data that pointed to prolonged recovery but were set to end the week with their biggest gains in five on hopes of more economic stimulus to shore up the world's second-largest economy.

** At the midday break, the Shanghai Composite index was down 0.65% at 2,807.64 points.

** China's blue-chip CSI300 index was down 0.14%, with its financial sector sub-index higher by 0.34%, the consumer staples sector up 0.66%, the real estate index up 0.41% and the healthcare sub-index down 0.1%.

** For the week, SSEC gained 1.6%, while CSI300 was up 2%, both recording their biggest weekly advance since the week of March 6.

** China's factory gate prices fell the most in five months in March, with deflation deepening and set to worsen in the coming months as the economic damage wrought by the coroanvirus shuts down many countries.

** Analysts expect a deep first-quarter economic contraction in China and have grown increasingly pessimistic about the country's prospects for 2020 due to the pandemic's sweeping global impact.

** Beijing has rolled out a series of fiscal and monetary support steps, and sources have told Reuters that policymakers are readying more stimulus to stabilise growth and prevent mass unemployment.

** Meanwhile, the U.S. Federal Reserve and the Bank of England ramped up their emergency responses on Thursday as they pushed deeper into territory once considered fraught with risk for central bankers.

** China on Friday reported a fall in new coronavirus cases, particularly imported and asymptomatic infections which authorities fear could see a second wave of COVID-19 as city and travel restrictions are lifted.

** The yuan was quoted at 7.0387 per U.S. dollar, 0.08% firmer than the previous close of 7.044.

** As of 04:36 GMT, China's A-shares were trading at a premium of 26.26% over the Hong Kong-listed H-shares.

** The Hong Kong stock market, which is closed for Good Friday, will not operate on April 13, Easter Monday.