China’s stocks rallied, sending the benchmark index to its biggest two-day advance since May, as the prospect the government may relax its policy tightening measures spurred gains for the nation’s banks and property companies.
China’s new credit probably fell by a record in the second half amid a crackdown on speculative lending, limiting prospects for economic expansion this year as policy makers focus on controlling financial risks.
The dollar maintained losses from last week against most of its major counterparts on speculation a report tomorrow will show U.S. consumer confidence rose to the highest since July, damping demand for haven assets.
China shouldn’t worry excessively about economic growth in the second half, the People’s Daily newspaper reported today, citing Yi Xianrong, a researcher with the Institute of Finance and Banking under the Chinese Academy of Social Sciences.
China’s stocks fell, dragging the benchmark index down by the most in a week, on concern proposed rules for banks may curb credit growth and speculation intensified the government won’t loosen property restrictions.