China’s stocks rose, driving the benchmark index to its second weekly gain, after bank lending surged and as slower-than-forecast economic growth gave the government more scope to loosen monetary policy.
Hugh Simon , chief executive officer of Hamon Investment Group and co-manager of the Dreyfus Greater China Fund, comments on China’s economic outlook and his investment strategy. He spoke in an interview with Bloomberg Television in Hong Kong today:
Asian stocks rose as raw-material producers gained after China refrained from raising interest rates to cool inflation, while Australia’s biggest banks advanced on speculation they will benefit from increased competition.
China’s stocks fell to the lowest level since March 2009 on concern the European debt crisis will curb exports and a potential cash crunch before the Chinese new year holidays may boost lending costs for small companies.
China’s Shanghai Composite Index , the first of the 10 biggest benchmark measures to enter a bear market this year, will rebound as a surge in exports lowers the risk of a slump in economic growth, according to Franklin Templeton’s local fund management unit.
Stocks advanced, copper and rubber jumped to records, and the dollar strengthened for a sixth day after China refrained from raising interest rates and as optimism increased that the U.S. recovery is gathering steam.