China’s stocks fell, with a gauge of smaller companies posting the biggest drop on record, amid concern the government’s plan to restart initial public offerings will divert funds from existing equities.
Gold shipments to China from Hong Kong rose in October to the second-highest on record as jewelers and retailers bought the metal to build up inventories ahead of a peak-demand season at the end of the year.
Investors are betting China’s brokerages will gain more than commercial banks and other companies from a plan unveiled this month to make market forces the “decisive factor” in the world’s second-largest economy.
Chinese local governments’ $1.6 trillion in bank borrowings are a major obstacle to the freeing up of interest rates in the world’s second-largest economy, according to BNP Paribas SA and Capital Economics Ltd.
Industrial & Commercial Bank of China Ltd., the world’s most profitable lender, posted the slowest earnings gain in more than four years as nonperforming loans increased while lending and fee income growth slowed.
China’s top four banks posted their biggest increase in soured loans since at least 2010 as a five- year credit spree left companies with excess manufacturing capacity and slower profit growth amid a cooling economy.