September 23, 2024 03:08 GMT
CHINA STOCKS: Strong Start to the Week Ahead of Next Week’s Holidays
CHINA STOCKS
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- China and Hong equity markets are starting the week on a positive note following on from last week’s shortened week.
- The Shanghai Composite finished the week +1.21% higher with only three days of trading.
- This morning the Shanghai composite is up 0.43% in early trade.
- The PBOC announced the reduction in the interest rate for the 14-day repo rate ahead of next week’s holidays.
- Whilst not as widely used, the reduction in the 14-day is seen as a timely reminder of authorities’ willingness to alter policy to support the economy and the Monday’ rally in part is due to expectations that today’s policy changes are potentially a sign of more to come.
- The other focus point remains on domestic calls for further economic stimulus. See our onshore China press briefing for more details.
- Across in Hong Kong, the Hang Seng too had a strong week last week, up 5.12% as investors digested the HKMA’s first cut in rates in four years.
- The Hang Seng too is opening strong Monday, up 0.41% in morning trade as investors take a positive view on last week’s monetary policy decisions ahead of National Day Holidays next week.
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