China and Hong Kong Stocks Open Higher

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After Beijing unveiled a key rate reform to steer funding costs lower for firms, China and Hong Kong stocks started the week higher, according to Reuters.

Aimed to support a stuttering economy, China’s central bank unveiled a key interest rate reform on Saturday (17 Aug) to help steer borrowing costs lower for companies and support a slowing economy that has been hurt by a trade war with the United States.

“The tool (LPR quotation reform) equals to a guided rate cut, and is only pushed out by the PBOC at crucial moments,” said Dai Zhifeng, Analyst with Zhongtai Securities Co in the report. 

The CSI300 index rose 0.7 percent to 3,735.75 points at 1:34 GMT, while the Shanghai Composite Index gained 0.5 percent to 2,838.05 points.

The Hang Seng index in Hong Kong was up 1.5 percent, to 26,124.85 points.

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Written by

Cheryl Toh

Last updated on

August 19th 2019, 10:35 am

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