China stocks extend gain for second day

Mainland China share market closed higher for second consecutive session on Friday, 16 January 2015, as risk appetite buying across the board, led by shares of gold miners and lenders, amid speculation the government will take more steps to boost economic growth. The Shanghai Composite closed up 1.2% at 3376.50, putting the market up a total of 2.8% for the week.

The Mainland market sentiments remained buoyant following Thursday's lending data. Loan growth is slowing in China but total social financing--which encompasses shadow banking credit--picked up. Chinese banks issued 697.3 billion yuan (US$112.6 billion) worth of new loans in December, down from 852.7 billion yuan in November, data from the People's Bank of China showed Thursday. At the same time, total social financing, a broader measurement of credit in the economy that include bank lending as well as shadow bank financing activities, rose to 1.69 trillion yuan in December from 1.15 trillion yuan in November. For the full year of 2014, Chinese banks extended a total of 9.78 trillion yuan in new yuan loans, a new high for annual credit growth.

 

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