Chinas central bank lowered the down payment ratios for mortgages to 15% for first-home purchases and 25% for second-home purchases. The central bank also said it will pare interest rates on loans tied to individuals housing provident funds by 0.25%age points. Those moves follow several other measures rolled out by the cities of Hangzhou, Hefei, Xian, Shenzhen, Wuhan, Beijing and Chengdu to stimulate local property markets.
Meanwhile, official mainland data showed retail sales expanded by just 2.3% last month. Fixed-asset investment growth was sluggish at 4.2% during the first four months of 2024. Industrial output remained the sole silver lining, rising at a faster-than-expected 6.7% in April.
At closing bell, the benchmark Hang Seng Index surged 177.08 points, or 0.91%, to 19,553.61. The Hang Seng China Enterprises Index added 63.32 points, or 0.92%, to 6,934.70.
HSBC Holdings sank 2.2% to HK$68.55 on speculation Ping An Insurance Group is considering selling a stake in the UK bank. The Chinese insurer surged 5.7% to HK$45.45.
Hollwi Urban Operation Service Group, a Chinese state-owned property-management company, rose 0.3% from its IPO price to HK$3.21 on its trading debut in Hong Kong.
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