Chinese stocks fall to three-month low, but Bitcoin hits new high – business live

Chinese stocks have hit this lowest level since the summer, as a government crackdown on risky lending spooks investors.

The Shanghai composite index fell almost 1% to 3,322 points, the lowest level since 25th August.

Traders said jitters in the bond market are hitting Chinese shares, on fears that corporations will pay more to borrow – eating into profits.

New curbs on the asset management sector are also driving people to sell, as Reuters explains:

Selling in China’s stock markets last week had been prompted by a rout in the bond market that pushed yields on government treasury bonds to three-year highs, and by fresh moves to reduce risks in the asset management industry that may bring a sea change for banks and millions of small investors.

But while bond market jitters appeared to ease on Monday, stock market investors continued to unload shares in major firms that have enjoyed strong gains in recent weeks.

This could weigh on Europe’s stock markets this morning too….

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Weak productivity growth is a key reason why Britain faces years of anaemic growth and weak pay.

But the UK government hopes to crack the puzzle today, by announcing a new UK’s Industrial Strategy.

It will focus on five ‘key foundations’ — ideas, people, infrastructure, business environment and places, in an attempt to make the British economy fit for the 21st century.

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, will launch the strategy this morning. He hopes to make Britain a world leader in areas such as AI and driverless cars.

Our economics editor Larry Elliott explains:

The paper will identify four grand challenges, global trends that the government sees as shaping the future: artificial intelligence; clean growth; an ageing society; and future mobility from driverless cars to drones.

Industrial strategy went out of fashion in the Conservative party after the defeat of the 1974-9 Labour government by Margaret Thatcher. But Clark believes a new approach based on competition rather than on picking winners will help address Britain’s long-term problems.

But will it really be enough to spur Britain forwards?

City investors will be watching Germany closely. Over the weekend, senior officials in Angela Merkel’s CDU party agreed to pursue a “grand coalition” with the Social Democrats. This could spare Germany from a fresh snap election.

Plus, we get a new health check on America’s housing market

9.30am GMT: Industrial strategy released

3pm GMT: US new home sales figures for October