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Hopes of loosening extend China streak

Chinese stocks extended their winning run to a fourth session yesterday as hopes of looser monetary policy continued to grip the market.

The Shanghai Composite index rose 1.1 per cent to 2,562.41, the highest since June 24. It has gained 5.7 per cent so far this week.

Signs of slowing growth and relatively muted inflation have fuelled hopes that some of the policy tightening introduced earlier this year might be unwound.

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