Rolling Dice with Market Games, Loan Policy

By staff reporters Li Tao, Zhang Man and Wen Xiu

Chinese stock prices fell through August but suddenly rebounded in September, with the Shanghai Composite Index climbing within days from a basement low 2683 on September 1 to more than 3000 points.
 
Why the bounce? Interviews with bankers and analysts suggest higher-than-expected bank lending in August, offset by government policy adjustments, played a major role in directing market activity.