Hong Kong stocks rose by the most in two weeks after China’s central bank cut banks’ reserve requirement ratio for a second time to inject more liquidity into the system. Official reports showed the nation’s economic recovery strengthened.
The Hang Seng Index advanced 1.4 per cent to 18,305.63 at 10.02am local time, poised for a 0.6 per cent advance for the week. The Tech Index gained 0.9 per cent while the Shanghai Composite Index added 0.3 per cent.
The People’s Bank of China on late Thursday lowered the amount of the money commercial lenders must set aside as reserves by 25 basis points, with effect from Friday. The move would add about 500 billion yuan (US$68.7 billion) into the financial system.
Industrial production in China rose 4.5 per cent in August from a year earlier while retail sales increased 4.6 per cent, the statistics bureau said, both exceeding market consensus. Fixed-asset investments gained 3.2 per cent in the first eight months, in line with expectations.
The news is published by EMEA Tribune & SCMP
