20-05-2025
- Business
- South China Morning Post
Hong Kong stocks rise after China cuts borrowing costs for first time in 7 months
Hong Kong
stocks rose on Tuesday after China cut key interest rates for the first time in seven months.
The Hang Seng Index gained 0.9 per cent to 23,550.74 at 9.55am local time. The Hang Seng Tech Index also added 0.9 per cent. On the mainland, the CSI 300 Index climbed 0.2 per cent and the Shanghai Composite Index added 0.1 per cent.
CSPC Pharmaceutical Group advanced 5.2 per cent to HK$6.27 and Sino Pharmaceutical gained 3.7 per cent to HK$4.21. Xiaomi climbed 3.2 per cent to HK$54 and Alibaba Group Holding rose 2.2 per cent to HK$121.80.
The People's Bank of China on Tuesday lowered the one-year loan prime rate (LPR) to 3 per cent from 3.1 per cent, while the five-year rate, a reference for long-term loans including mortgages, was cut to 3.5 per cent from 3.6 per cent. The LPRs were last cut by 25 basis points in October following a broad easing by the central bank.
Contemporary Amperex Technology , the biggest stock offering in Hong Kong this year, jumped 12 per cent to HK$294 on the first day of trading. The maker of lithium-ion batteries for electric vehicles surged by as much as 14 per cent at the opening bell.
Elsewhere in Asia-Pacific, Japan's Nikkei 225 climbed 0.5 per cent, South Korea's Kospi rose 0.2 per cent and Australia's S&P/ASX 200 added 0.6 per cent.
