FX.co ★ Hong Kong Shares Climb After PBoC Rate Cut

Hong Kong's stock market experienced an upswing on Tuesday morning, with equities gaining 210 points, or 0.9%, to reach 23,540. This increase followed a stagnant performance in the preceding session. The market responded positively to the People's Bank of China's decision to lower its key lending rates to unprecedented levels, a move aimed at stimulating an underperforming economy and countering the effects of rising U.S. tariffs. Specifically, the 1-year loan prime rate (LPR) was reduced by one basis point to 3.0%, while the 5-year LPR saw a similar reduction to 3.5%. However, gains were somewhat restricted due to a slight decline in U.S. futures, driven by traders assessing Moody's downgrade of the U.S. credit rating and concerns regarding a tax-cut bill that could potentially exacerbate the country's fiscal challenges. Despite this, most sectors showed growth, particularly in consumer, technology, and financial stocks. Notably, Contemporary Amperex Technology, the largest battery producer globally, experienced a remarkable rise of over 11% during its Hong Kong trading debut. Additional strong performers included Xiaomi with a 3.8% increase, Hansoh Pharma up by 6.2%, Wuxi Biologics rising by 4.0%, and Laopu Gold advancing by 3.9%.