Hong Kong stocks break two-day losing streak on lower rates, with bank and property stocks rising
- HSBC, Standard Chartered lower rates to help small businesses
- Shanghai benchmark slides for third day as manufacturing slows
Hong Kong stocks broke a two-day losing streak on Thursday, with bank and property stocks among the gainers after moves in the US and the city to lower interest rates.
The Hang Seng Index rose 0.9 per cent to finish at 26,906.72.
HSBC rose 0.5 per cent to HK$59.50 after announcing it would cut its rates to take pressure off of small businesses. Standard Chartered joined in that move, following rate lowering by the US Federal Reserve and the Hong Kong Monetary Authority, and rose 0.9 per cent to HK$71.90.
The rate moves boosted shares of property developers.
Hang Lung Properties, one of the city’s largest builders of shopping centres, rose 0.5 per cent to HK$19.66. Sun Hung Kai Properties, the city’s largest listed developer by value, rose 2 per cent to HK$118.90.
“As Hong Kong’s GDP growth slows down in the recession, this [rate cut] will help the Hong Kong market,” said Kenny Tang, chief executive of Royston Securities. “The property sector will benefit the most. The government has already loosed the mortgage requirement, which will improve the property market.”