China's economy rebounded from its weakest growth in almost a decade as record lending and surging investment countered a slump in exports. Gross domestic product expanded 7.9% in the second quarter from a year earlier after a 6.1% gain in the previous 3 months. That was more than the 7.8% median estimate of 20 economists surveyed by Bloomberg News. "China's recovery is on track and growth may accelerate to near 9% in the third quarter and 10% in the fourth quarter," said Lu Ting, an economist at Bank of America? Merrill Lynch in Hong Kong.

Asian stocks advanced for a third day, led by automakers and mining companies, as an improvement in U. S. manufacturing and rising commodity prices fueled optimism that the global economy is recovering. The S&P 500 climbed 3% in New York yesterday after Federal Reserve figures showed industrial production shrank 0.4 % last month, the least in eight months.

CIT Group Inc., the 101? year? old commercial lender running short of cash, said it probably won't receive a federal bailout, fueling speculation the company is on the verge of bankruptcy. CIT, once the biggest independent commercial lender, may seek court protection if no U. S. aid emerges, Standard & Poor's said this week.

The company said it is "evaluating alternatives." A bankruptcy filing may be the first by a company that took money from the Troubled Asset Relief Program. Regulators were debating whether a CIT collapse would cause a cascade of failures among other businesses, the same reasoning used to justify multiple bailouts of American International Group Inc. CIT isn't big enough to be a systemic risk, said Jason Mudrick, president of New York? based investment firm Mudrick Capital Management LP and a CIT bondholder.

Most Federal Reserve officials judged the economy at risk to further shocks last month even as they rejected an expansion in asset purchases, reflecting doubt at the likely impact of such a move. Policy makers were concerned that consumer spending will resume its decline once temporary benefits to household incomes from the fiscal stimulus subside, the minutes showed. Treasuries remained lower and stocks higher after the minutes.

Central bankers expect a contraction of 1% to 1.5% in 2009, before growth resumes in 2010 and 2011, the Fed said. They are anticipating a jobless rate of 9.8% to 10.1% this year. RESULT UPDATE IDBI Bank Ltd. Power Finance Corporation Ltd.