SHANGHAI, Nov 24 (Reuters) - Chinese stocks wobbled in volatile trade on Friday morning as investors grappled with the biggest selloff in months the previous day, with fresh government steps to curb financial risks and a rout in the bond market sapping confidence.
The benchmark blue-chip CSI300 Index opened down and then rose into positive territory before sinking back into the red around 0200 GMT. Futures on 10-year treasury bonds for March delivery were up about 0.15 percent.
In the currency market, the yuan traded at fresh five-week highs on the back of a weaker dollar.
Stocks took a dive on Thursday amid an extended bond selloff, while investors also reacted to new policies aimed at curbing micro-lending and tightening regulation of asset management businesses - both of which were seen as potentially eating into liquidity.
Thursday was the CSI300's worst day since June 2016 and the Shanghai Composite index dropped the most since December.
Chinese stocks have been on a tear in the second half of the year, and analysts said some investors were selling to lock in profits.
"We have seen a bull run in blue-chips this year. But no matter how good a company is, its price cannot go up forever," said Wu Kan, head of equity trading at Shanshan Finance.
"Fund managers who have embraced those high-flying stocks are under pressure to lock in profit" as the end of the year approaches, he said.
He said risk appetite was also "greatly" reduced as the 10-year government bond yields traded above 4 percent.
Before Thursday's fall, the blue-chip CSI300 Index had risen more than 26 percent since early May, while the Shanghai Composite Index was up about 13 percent.
(Additional reporting by Winni Zhou and Liu Luoyan; Editing by Shri Navaratnam)