SHANGHAI: China stocks slipped on Friday in line with a broader correction across global equity markets, but posted solid gains on the week.

Both the blue-chip CSI300 index and the Shanghai Composite Index ended down 0.1 percent at 3,051.59 points and 2,860.02 points, respectively.

But for the week, the CSI300 was up 3 percent and SSEC gained 3.5 percent, their best weekly performance in two months.

Investors’ appetite for riskier assets has improved on hopes for more economic stimulus from Beijing and as oil prices rebounded, spurring a global equities rally. But traders said thin volumes indicated investors remained jittery.

Still, the China market is on track to have its best week in two months, while Hong Kong is poised to enjoy its best weekly performance in 10 months.

Some analysts suspect the rebound is petering out, as thin trading volumes suggest investors remain jittery amid economic uncertainty.

This week’s recovery in risk appetite has been underpinned by a broad rebound in global markets following last week’s rout, as a bounce in oil prices bolstered energy and banking shares.

However, Alex Wong, director of asset management at Ample Finance Group in Hong Kong, said that the oil rally is losing momentum, posing renewed risks to global stock markets, including Hong Kong.

“Oil price is a key factor to watch. If oil prices resume sliding, energy and European banking stocks would be vulnerable, triggering renewed volatility in global markets, and hitting Hong Kong stocks,” Wong said.

Commenting on China stocks, Wong said that although the People’s Bank of China’s efforts to stabilise the yuan and improve its communications with the market are positive, the health of the economy remains a concern, despite stimulus hopes.

“We have seen what Beijing did in 2009, which was not effective. More stimulus won’t solve the fundamental problem,” Wong said, referring to China’s 4 trillion yuan ($613.53 billion) investment package unveiled during the 2008/09 global financial crisis.

Most sectors in China fell. Hong Kong shares dropped, with energy shares among the biggest decliners.

Bucking the trend, China Reinsurance Group Corp rose 1.6 percent, after the company estimated its 2015 profit grew roughly 40 percent.—Reuters