Economy of China News

Debt swaps, which allow local governments to convert their debt to low interest bonds, should also be carried out effectively and sensibly, Lou said, easing the debt burden without disrupting the broader economy.

The benchmark Shanghai Composite Index dived 6.42 percent, or 307.00 points, to 4,478.36 on turnover of 685.5 billion yuan ($112.2 billion). The index lost 13.32 percent over the week.

The benchmark Hang Seng Index lost 295.11 points to close at 26,566.70 on turnover of HK$123.15 billion (US$15.89 billion).

The benchmark Shanghai Composite Index slid 3.26 percent, or 164.87 points, to 4,898.12.

In mainland China the benchmark Shanghai Composite Index added 0.87 percent, or 44.76 points, to 5,166.35 on turnover of 1.1 trillion yuan ($179.8 billion). The market gained 2.85 percent over the week.

Economists at the central bank said this week they expect growth to pick up modestly in the next six months as previous policy easing measures start to take effect and the housing market stabilises.

China`s exports in the first five months rose 0.7 percent from a year earlier, far from the government`s target of 6 percent this year. Exports to Europe and Japan fell 6.9 percent and 8.1 percent, respectively, and shipments to Southeast Asia were flat.

Industrial output, which measures output at factories, workshops and mines, rose 6.1 percent year-on-year in May, the National Bureau of Statistics said in a statement.

The Hang Seng Index fell 0.88 percent, or 242.21 points, to 27,309.68 by the break on turnover of HK$81.88 billion ($10.57 billion).

In choppy trade, the Shanghai Composite Index was down 3.9 percent after diving nearly 7 percent on Thursday, when investors dumped stocks after more brokers tightened margin trading requirements.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 6.7 percent, to 4,834.01, while the Shanghai Composite Index lost 6.5 percent, to 4,620.27 points.

China`s vast and regular trade surpluses have seen it accumulate the world`s largest foreign exchange reserves, which stood at $3.73 trillion at the end of March.

The dollar surged 0.6 percent against the Japanese currency to 122.36 yen, breaking above the 122 level for the first time since March 10 and reaching an eight-year peak. 

The Hang Seng Index added 398.80 points to 28,391.63 on turnover of HK$111.38 billion ($14.37 billion).

The Hang Seng Index added 199.95 points to 27,723.67.

The Hang Seng index added 81.41 points, to 27,330.69 on turnover of HK$67.50 billion.

Central bank cut interest rates early this week for the third time in six months to lower companies` borrowing costs and boost activity.

It limits IPO prices to a maximum 25% above the average price-to-earnings ratio for listed companies.

China`s crude oil imports hit a record of almost 7.4 mn bpd, ahead of US.

China cut interest rates for the third time in six months on Sunday in a bid to lower companies` borrowing costs and stoke a sputtering economy that is headed for its worst year in a quarter of a century.