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Hong Kong stocks rise on speculation about mortgage-rate cuts in China
Hong Kong stocks jump for a second day as mainland developers rally on speculation about mortgage-rate cuts
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Hong Kong stocks jumped for a second day to a one-week high as mainland developers rallied on speculation about mortgage-rate cuts.
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The Hang Seng Index added 0.8 per cent to 17,369.09 on Friday, adding to a 0.8 per cent gain on Thursday and narrowing the week’s loss to 0.4 per cent. The Tech Index gained 0.1 per cent while the Shanghai Composite Index dropped 0.5 per cent to a fresh eight-month low.
Food delivery platform Meituan added 0.6 per cent to HK$123, smartphone maker Xiaomi added 1.6 per cent to HK$19.22 and insurer Ping An jumped 1.4 per cent to HK$35.35, leading gains among index heavyweights. Longfor rallied 3 per cent to HK$8.02 while peer China Resources Land gained 1 per cent to HK$19.60, leading a 1.2 per cent gain among mainland developers.
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China could cut rates on outstanding mortgages by up to 50 basis points as early as this month to lower borrowing costs and spur consumption, Bloomberg reported on Friday, citing unnamed sources. That followed comments from the country’s central bank chief last month that it would press forward with supportive monetary policy in pursuit of an economic recovery.
Sentiment received another boost after Bank of America backed China’s equity markets, saying yields are attractive again after a pullback. The downside is limited, it said, and their low correlation with the US market could provide a place to shelter from market risks.
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