China Stocks Higher on Drop in Money-Market Rates

China’s stocks rose, sending the Shanghai Composite Index higher for a second day, as a drop in money-market rates eased concerns of a cash crunch before new share offerings and national holidays.

China Citic Bank Corp. led gains for lenders, rallying 5.5 percent. A gauge of funding availability in the interbank market fell for the first time in four days and interest-rate swaps slid after the central bank cut a rate it pays on repurchase agreements to the lowest since January 2011. PetroChina Co. and Jiangxi Copper Co. slid at least 1.5 percent in Hong Kong, dragging down the Hang Seng China Enterprises Index, after home prices fell in all but two cities tracked by the government.

The Shanghai Composite added 0.4 percent to 2,317.13 as of 1:04 p.m., while the CSI 300 Index rose 0.4 percent. The central bank’s rate reduction and cash injection to banks this week signal efforts to bolster the economy after new-home prices fell in 68 of 70 cities tracked by authorities last month.

Bloomberg

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