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Hong Kong Market extends gain as China lending rate cut

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Last Updated : Feb 21 2024 | 8:04 PM IST
Hong Kong share market logged second consecutive day of gains on Wednesday, 21 February 2024, with shares in real estate companies leading gains, after China announced its biggest ever reduction in the benchmark mortgage rate on Tuesday and on speculation the citys government will remove more curbs this month to stem an industry slump.

At closing bell, the benchmark Hang Seng Index surged 255.59 points, or 1.57%, to 16,503.10 to reach the highest level since January 5. The Hang Seng China Enterprises Index spurted 123.55 points, or 2.24%, to 5,642.78.

Shares of property developers surged after China announced its biggest ever reduction in the benchmark mortgage rate on Tuesday and on speculation the citys government will remove more curbs this month to stem an industry slump. Sun Hung Kai Properties advanced 3.7% to HK$75.15, Henderson Land added 2.8% to HK$21.90 while New World Development climbed 4.6% to HK$9.79. Longfor soared 9.5% to HK$10.04 and peer China Resources Land jumped 4.9% to HK$25.60

Tech stocks also rallied, as Alibaba Group strengthened 1% to HK$72.90 and Tencent rose 1.6% to HK$288.80 while Meituan appreciated 4.9% to HK$77.

HSBC slumped 3.8% to HK$60.25. The UK lender reported a 56% jump in net profit in 2023, as net interest margin slimmed in the final quarter and credit losses weighed on results.

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First Published: Feb 21 2024 | 3:46 PM IST

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