The world’s largest money managers say China’s steepest monthly stock gain in more than a year shows the fastest-growing major economy will avert a recession. The Shanghai Composite Index is the broadest measure of shares traded on the Mainland posted a 9.3% gain in January, the best among the world’s 10 biggest markets. Last year, the index fell 65 percent, the worst since at least 1996, according to data compiled by Bloomberg. Chinese shares rebounded after the central bank lowered interest rates five times since September and the government announced a US$585B stimulus plan. China’s economy is expected to grow near 8% this year even after expanding 6.8% in Y 2008 Q-4, the slowest pace since December 2001. China’s central government is pressuring state owned banks to increase lending as it unveiled the 4 trillion yuan stimulus package, reduced export taxes and agreed to provide support for 10 industries, through tax cuts and subsidies for steel and autos.
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