SHANGHAI (Reuters) - China stocks rebounded roughly 2 percent on Friday as investors looked for bargains among severely beaten down shares, but the market is still on track to post its biggest monthly fall since the depths of the global financial crisis.

An investor reacts in front of an electronic screen showing stock information at a brokerage house in Fuyang, Anhui province, January 28, 2016. REUTERS/China Daily

Hong Kong stocks also bounce, helped by stronger mainland and U.S. stocks.

China’s blue-chip CSI300 index rose 2.3 percent to 2,919.35 points by the lunch break, but looked set to end the week with a loss of 6.2 percent.

The Shanghai Composite Index gained 2.0 percent to 2,708.83, on track for a weekly fall of about 7 percent for the week.

For January, both indexes are poised to lose over 20 percent, their biggest monthly decline since the 2008-09 global financial crisis.

Hong Kong’s Hang Seng index added 1.8 percent to 19,544.72, while the Hong Kong China Enterprises Index gained 2.3 percent to 8,214.88.

Investors drew some relief after the People’s Bank of China, which has pumped out a huge 690 billion yuan this week to avoid a liquidity crunch ahead of the Lunar New Year celebrations, said it would conduct more liquidity operations than usual between Jan. 29 and Feb. 19.

“January’s market decline exceeded our expectations,” said a mutual fund manager in southern China, who declined to be identified.

“However, after such a big correction, there’s relatively small room for further falls, while the chance of a rebound is increasing.”

Stocks rose across the board in China and Hong Kong.