China stocks in Hng Kong fell sharply after the European Central Bank failed to expand its sovereign debt purchase plan, despite encouraging news of large drop in Chinese inflation.
A rebound in U.S. markets helped China and Hong Kong bounce back from huge losses Thursday. Chinese banks rebounded after a surge in lending lifted loan values for the month.
A big drop on Wall Street added impetus to Hong Kong's pullback from recent sharp gains. Better prospects for an easing of China's tight credit policies could benefit investors.