FX.co ★ Hang Seng Climbs 1.5% as PBoC and Banks Deliver Stimulus

On Tuesday, the Hang Seng Index surged by 349 points, equivalent to a 1.5% increase, finishing at 23,681. This rise followed a rather uneventful session previously, with robust growth across all sectors. Market sentiment improved as the People's Bank of China (PBoC) reduced key lending rates for the first time in seven months, reaching new lows in an effort to bolster the economy and offset potential repercussions from a trade conflict with the United States. In a coordinated response, several major state-owned banks also decreased deposit rates to alleviate pressure from tightening interest margins. However, additional upward momentum was limited by a slight decline in U.S. futures, as investors anticipated comments from several Federal Reserve officials scheduled for later in the day. Notably, Alibaba Pictures' stock surged by 32% following stronger-than-expected annual revenue reports, while Xiaomi Corporation saw a 4.7% increase after initiating mass production of its proprietary mobile chip. Concurrently, CATL's shares closed at HKD 296, marking a 12.5% rise from its initial public offering (IPO) price of HKD 263. The company generated USD 4.6 billion in its Hong Kong stock market debut, marking the largest IPO globally to date this year.