China’s stocks will extend this year’s bear market losses and investors should avoid bank shares as loan growth slows and the need to raise additional capital increases, according to Pacific Sun Investment Management Ltd.
China’s stocks fell the most in a week after Moody’s Investors Service cut the debt ratings of six European nations and a former central bank official said the government is unlikely to significantly loosen credit this year.
Guangzhou Constant Shoes Co. is set to abandon Guangdong, the southeastern province at the center of China’s exporting boom since the 1980s, by shifting most of its production 500 kilometers (311 miles) inland.
China’s stocks rallied, driving the benchmark index to its biggest gain since October, on speculation policy makers will rein in efforts to cool the economy as Europe’s debt crisis threatens a global recovery.
Dollar bonds sold by China real estate companies this year are the worst performers among Asian non-financial corporate debt denominated in the U.S. currency amid concern the nation’s property market is overheating.
Hong Kong’s record run of initial public offerings is faltering as tumbling stock prices prompted Bluestar Adisseo Nutrition Group and China Datang Corp. to delay or withdraw a maximum $2.6 billion of share sales.
The biggest drop in emerging-market stocks since October 2008 is giving money managers the chance to find bargains in world-class companies from Sao Paulo to Moscow that are leading their peers in profit growth.
China plans to spend at least $1.3 trillion over the next five years to ease transport and freight bottlenecks in the country, creating a windfall for companies from Daqin Railway Co. to Anhui Expressway Co .