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Hopes for Easing Settle in China; Market Falls The Most After Last Weeks Dead Cat Bounce

“An immediate reserve-ratio cut probably won’t come soon given policy makers’ concern about a possible rebound in inflation,” said Wu Kan, afund manager at Dazhong Insurance Co., which oversees $285 million. “The tight liquidity condition won’t change soon. Earnings risks have yet to be fully exposed with the reporting season kicking off.”

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