China's faster-than-estimated economic growth has raised investors' speculation that the monetary authority will boost borrowing costs. Their tightening concerns dragged the Shanghai Composite Index down 2.7 percent last week.
Friday's 1.4 percent rebound saved the gauge from the lowest level in four months, after the central bank raised the reserve-requirement ratio (RRR) for lenders. However, the sustained high inflation and the "hot" economy may push the government to further tighten monetary policy, said analysts.
Friday's 1.4 percent rebound saved the gauge from the lowest level in four months, after the central bank raised the reserve-requirement ratio (RRR) for lenders. However, the sustained high inflation and the "hot" economy may push the government to further tighten monetary policy, said analysts.
