Hong Kong Stocks Rise on Speculation About Mortgage-Rate Cuts in China
Hong Kong stocks jumped for a second day to a one-week high as mainland developers rallied on speculation about mortgage-rate cuts.
The Hang Seng Index added 1.1% as of 10.58am local time. The Tech Index gained 0.7% while the Shanghai Composite Index down 0.1%.
Food deliver platform Meituan added 2%, e-commerce firm Alibaba Group Holding added 0.24% and insurer Ping An jumped 1.3%, leading gains among index heavyweights. Longfor added 3.6% while peer China Resources Land rallied 3.4%.
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.
Friday’s gain helped the Hang Seng Index to erase losses from earlier in the week. It also helped to narrow September’s losses to 3 per cent. Optimism about a rate cut from the US Federal Reserve and increasing southbound inflows after Alibaba’s inclusion in the Stock Connect programme helped shore up the markets.
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