Hang Seng Climbs After China Reduces RRR, Short-Term Rates
Shares in Hong Kong jumped 541 points or 2.7% to 20,476 in early trade on Friday, extending a rally from the prior session and notching their highest level in 19 months after China, as flagged by PBoC Governor Pan Gongsheng earlier this week, cut RRR by 50bps, the second reduction this year.
The move, which takes effect today, Sept.27, will release CNY 1 trillion to support the economy. Meanwhile, more fiscal measures are expected to be announced before China's week-long holidays starting on Oct. 1, following a Politburo meeting on Thursday.
For the week, the Hang Seng is pointing to a surge of around 12%, the second consecutive increase, tracking robust gains in Chinese markets. A positive lead from Wall Street overnight also added to the bullish mood, ahead of US PCE data later today. All sectors soared, with tech, consumers, and property leading the gains. China Mengniu Dairy jumped the most (14.0%), followed by Wuxi Biologics (12.6%), H world Group (10.1%), and Sands China (9.2%).
Source: Trading Economics
