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China market rises to five-year high on easing reports

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Capital Market
Last Updated : Dec 29 2014 | 5:45 PM IST
Mainland China share market closed near five-year high in volatile trading on Monday, 29 December 2014, amid speculation that new bank rules will help spur lending. The Shanghai Composite rose 0.33% to 3168.02, a highest level since January 2010.

The mainland market commenced trading with firm footing, rising as much as 2.1% in early trading on news that the central bank is changing the way that banks calculate their deposits in order to increase the amount of cash they can lend out. According to reports that China's central bank had changed its rules to allow deposits from non-bank financial institutions to count as reserves, a measure aimed at increasing lending and boosting growth. The market was, however, sunk into negative territory as the day progressed, but managed to eke out a moderate gain in the final minutes of trading.

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First Published: Dec 29 2014 | 4:07 PM IST

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