Hong Kong Market gains on China rate cut

Hong Kong share market finished session higher on Tuesday, 20 February 2024, supported by some Chinese property developers, after Beijing's People's Bank of China announced a rate cut.

Earlier in the day, the Chinese central bank announced a large 25 basis points cut to the five-year LPR to 3.95%. The LPR is benchmark lending rate for home loans and long-term corporate loans. Todays rate cut signals policymakers are getting serious about supporting the property market.

At closing bell, the benchmark Hang Seng Index added 91.90 points, or 0.57%, to 16,247.51. The Hang Seng China Enterprises Index rose 34.35 points, or 0.63%, to 5,519.23.

 

Among blue chips, Longfor surged 3% to HK$9.17, Wharf REIC jumped 3.3% to HK$26.25 while Henderson Land gained 0.9% to HK$21.30 and Sun Hung Kai added 0.9% to HK$72.45.

BYD tumbled 2.3% to HK$182.20, after it launched a plug-in hybrid EV model at 20% below its previous version, with rival makers set to compete with price cuts. Geely Auto declined 0.1% to HK$8.09 and Xpeng lost 3.7% to HK$35.55.

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