Hong Kong stocks rose on favorable earnings reports, with Chinese shares listed in the city extending a rebound after entering a bear market last week. Companies rallied as mainland manufacturing missed estimates, spurring bets the government will act to stabilize growth.
China’s benchmark money-market rate declined on speculation the central bank will inject more funds into the financial system as part of efforts to prop up growth in the world’s second-largest economy.
China’s stocks , trading almost 10 percent below this year’s highs, may extend declines as higher interest rates slow economic growth, according to ICBC Credit Suisse Asset Management Co. and Goldman Sachs Group Inc.
Cosco Shipping Co., a listed unit of China’s biggest shipping group, said first-half net loss tripled, the latest sign that slowing growth in the world’s second-biggest economy is eroding corporate earnings.
China’s economic growth may slump to 7 percent if the government doesn’t ease monetary policy immediately, a researcher affiliated with the nation’s top economic planning agency said in an interview with Hexun.com.