China's CSI 300 Index Posts Biggest Two-Day Gain Since Launch; Banks Rise

(Bloomberg) -- China's stocks rose, completing the
CSI 300 Index's biggest two-day gain, on speculation government
curbs on lending and investment will prevent production gluts
from driving down earnings. Shenzhen Development Bank climbed.

China's central bank raised interest rates on July 20 for
the third time since March to cool the fastest pace of economic
growth in 12 years and restrain inflation.


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China's Stocks Fall on $200 Billion Bond Sale Plans: World's Biggest Mover

(Bloomberg) -- China's stocks posted their biggest
drop in more than three weeks on concern that government plans
for a $200 billion bond sale and the proposed introduction of
index futures will drain cash from equities.

The CSI 300 Index fell 181.96, or 4.5 percent, to close at
3858.52. That's the biggest decline since June 4, when the index
lost 7.7 percent. The measure, which posted the biggest
fluctuation among markets included in global benchmarks, has
almost doubled this year.


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China's CSI 300 Index Will Have Industry Sub-Indexes From Start of July

(Bloomberg) -- China's benchmark CSI 300 Index will
have sub-indexes tracking 10 industry groups from the start of
next month, according to the benchmark's compiler.

The sub-indexes, which will include measures for the
consumer, energy and finance industries, will have a base value
of 1,000 points based on prices of December 31, 2004, China
Securities Index Co. said in a statement. Their composition will
be revised every six months, it added.


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European Government Bonds Gain as Stock Losses Spur Demand for Safe Assets

(Bloomberg) -- European two-year notes advanced,
snapping a three-day losing streak, as investors turned to the
safest assets after a slide in China's stock market pushed Asian
and European equity markets lower.

Benchmark two-year note yields slipped from their highest in
five years after the Chinese government's lifting of a tax on
share trading sent the country's CSI 300 Index of shares to its
biggest loss in three months. Asian equity markets fell, and
national benchmarks all 17 western European markets followed.


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China Stocks Rally From Biggest Decline in Seven Weeks; Tsingtao Gains

(Bloomberg) -- China's stocks rebounded from the biggest slide in seven weeks, supported by corporate earnings, as some investors judged yesterday's slump excessive.

The benchmark CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, climbed 125.69, or 4 percent, to 3276.00 as of 1:36 p.m. local time, set for the biggest one-day gain since Jan. 22. It tumbled 4.7 percent yesterday on concern rapid growth will prompt the government to raise interest rates.


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