China stock market, China economy, and global economic outlook – 7:05 PM

China’s economic growth is slowing as the country struggles to cope with a record-breaking wave of flooding, but it’s also expected to rise as demand surges ahead of the start of the Lunar New Year holiday.

The country has also taken steps to rein in its soaring debt levels, cutting its budget deficit to record low levels.

Read moreWorld stock markets in a frenzyAs of 5:20 p.m.

ET (1720 GMT), the Shanghai Composite Index was up about 13.7 percent, the Shenzhen Composite Index up more than 6.5 percent, and the Hong Kong Composite Index above 11 percent.

The Nasdaq was up more.

China’s economy grew at a 6.7-percent annual rate last year, but the central bank has kept its benchmark interest rate at 6.25 percent for more than a year.

The government has been cutting interest rates and raising its spending to spur economic growth, but China’s inflation has remained stubbornly high at 6 percent.

The government has promised to cut the country’s debt to zero by 2020, but has yet to do so.

A government report released Friday said that by that date, China’s debt was expected to be below 100 percent of GDP.

The economy has suffered the worst financial turmoil in decades.

China’s state-owned banks, which have been forced to take on even more debt to support their operations, have struggled to meet their debt payments.

The central bank cut interest rates to a record low in December, and in March it eased restrictions on buying foreign assets and other financial assets.

It said it will ease some restrictions on foreign investors, though some analysts said the move was too little too late.

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