Chinese Stocks Rise As Central Bank Makes New Promise Of Cheap Money

There remains absolutely no evidence that China (nor anyone else major, for that matter) is eager to take away the cheap money.

Once again, the People’s Bank of China, re-affirmed its commitment to a loose monetary policy, and of course stock investors loved the news.

Shanghai Daily: The benchmark Shanghai Composite Index was up 0.65 per cent, or 20.17 points, to close at 3,195.36 points. Turnover was 74.4 billion yuan (US$10.9 billion). Gainers outnumbered losers 658 to 171, and 83 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, rose 1.11 per cent to close at 1,148.10 points.

The People’s Bank of China said in its third-quarter monetary policy report that it would keep a relatively loose monetary policy and seek a balance between maintaining a stable economic growth and curbing inflation risks.

“We will make policies more flexible and sustainable to keep up with economic climate and price changes,” the central banks said in a statement late yesterday.

Stateside, meanwhile, the market is threatening to break its win streak, at least if early-morning futures are giong to hold up.

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