China’s Stocks Complete Second Week of Gains on Monetary Bets

China’s stocks rose, sending the benchmark index toward a second week of gains, as the prospect of more monetary stimulus overshadowed concern that a flood of new share sales will divert funds from existing equities.

The Shanghai Composite Index added 0.9 percent to 5,166.35 at the close, taking this week’s advance to 2.9 percent. Data this week showed parts of the economy stabilizing as factory output and credit growth accelerated in May, while exports and producer prices slid. The People’s Bank of China may cut banks’ reserve-requirement ratios as early as this weekend, according to China Merchants Bank Co.

Source : Bloomberg


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