Two of China’s three biggest securities firms predict the central bank will refrain from using open-market operations to inject funds this week as policy makers seek to rein in debt and contain inflation.
China’s stocks fell, dragging the benchmark index to its biggest loss in a month, as coal producers retreated and investors speculated the government may cut growth targets at an economic policy meeting this week.
A copper price collapse of more than 60 percent, zinc cut by up to a half and oil down to $70 a barrel. That’s the fate facing world commodity markets should China’s growth dip to 3 percent in the next three years -- a scenario economists at Barclays Plc are now examining.
China’s stocks rose the most since December, led by financial companies, as investors speculated banks will be allowed to issue preferred shares to boost capital and data showed exports grew more than estimated.
China’s move to loosen interest-rate controls is insufficient to cut corporate borrowing costs in coming months as the economy expands at the slowest pace since 1990, according to Barclays Plc and UBS AG.