The Shanghai Composite dropped 1.33% to close at 3,169, while the Shenzhen Component tumbled 1.8% to 9,796 on Friday, following the People’s Bank of China’s announcement that it will temporarily halt government bond purchases due to a shortage of supply. This move is part of a broader effort to temper investor sentiment amid concerns over weak economic growth, which has pressured the currency and eroded investor confidence. Investors also adopted a cautious stance while awaiting policy announcements from Beijing. Markets were fearful that China will fail to implement enough stimulus measures to arrest the economic slowdown and deflationary pressures. Notable losses were seen in stocks such as ZTE Corp (-1.7%), Leo Group (-3.7%), East Money (-2.7%), Zhongji Innolight (-6.9%), and Dawning Information (-1%).