China’s Stocks Rise as Small Companies Rally on Lending Reform

China’s stocks rose for the first time in four days as investors speculated looser interest-rate controls will benefit smaller companies, overshadowing concern banks’ lending margins will shrink.

Goertek Inc., an Apple Inc. supplier, led a gauge of technology companies to the biggest advance among industry groups, while the ChiNext index of smaller companies surged 3.4 percent. Bank of Communications Co. and Bank of Beijing Co. fell at least 1.3 percent after the People’s Bank of China ended a floor on borrowing costs while keeping a cap on deposit rates.