Technoglitch
Core Member
China’s stocks rallied the most in three months, led by technology and industrial companies, after data showed the nation’s banks doled out a record amount of loans in January.
The Shanghai Composite Index climbed 3.3 percent to 2,836.57 at the close, paring its decline this year to 20 percent. PetroChina Co. advanced 2.6 percent. New yuan lending jumped to 2.51 trillion yuan ($390 billion) last month, beating analyst estimates. Hong Kong’s Hang Seng China Enterprises Index extended Monday’s advance. The yuan weakened after having its biggest gain in more than a decade.
Policy makers are expected to release a package of measures to ensure economic growth is in a reasonable range this year, the Economic Information Daily reported, citing unidentified people. The Shanghai Composite has fallen the most among global benchmark indexes after Greece’s this year on concern the slowdown and the yuan’s depreciation will exacerbate capital outflows. China’s exports declined for a seventh straight month in January and imports plunged 19 percent, data showed Monday.
"The credit growth is driven by government efforts to boost liquidity and an increase in corporate financing," said Ken Chen, a Shanghai-based analyst at KGI Securities Co. "Economic indicators did not look pretty in January and many enterprises were facing losses or profit declines. To avoid defaults, the government stepped up easing and essentially delayed the exposure of credit risks. Government departments are also preparing funds for large projects to be launched."
China's Stocks Rise Most in Three Months as New Loans Hit Record - Bloomberg Business
The Shanghai Composite Index climbed 3.3 percent to 2,836.57 at the close, paring its decline this year to 20 percent. PetroChina Co. advanced 2.6 percent. New yuan lending jumped to 2.51 trillion yuan ($390 billion) last month, beating analyst estimates. Hong Kong’s Hang Seng China Enterprises Index extended Monday’s advance. The yuan weakened after having its biggest gain in more than a decade.
Policy makers are expected to release a package of measures to ensure economic growth is in a reasonable range this year, the Economic Information Daily reported, citing unidentified people. The Shanghai Composite has fallen the most among global benchmark indexes after Greece’s this year on concern the slowdown and the yuan’s depreciation will exacerbate capital outflows. China’s exports declined for a seventh straight month in January and imports plunged 19 percent, data showed Monday.
"The credit growth is driven by government efforts to boost liquidity and an increase in corporate financing," said Ken Chen, a Shanghai-based analyst at KGI Securities Co. "Economic indicators did not look pretty in January and many enterprises were facing losses or profit declines. To avoid defaults, the government stepped up easing and essentially delayed the exposure of credit risks. Government departments are also preparing funds for large projects to be launched."
China's Stocks Rise Most in Three Months as New Loans Hit Record - Bloomberg Business
