Hong Kong equities rallied after POBC pumped more liquidity

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Source: Dukascopy Bank SA

Hong Kong equities rallied on Thursday after the POBC injected CNY365 billion into the national banking system to ease liquidity conditions before the end of the quarter. However, dismal data from Europe capped gains of the Hong Kong blue chips index. The Hang Seng Index soared 1.14% to end Thursday's session at 20,762.29. All nine sectors included in the index surged. The top-performers were technology and oil and gas sectors. Tencent skyrocketed 2.42% while PetroChina and CNOOC gained 1.19% and 2.06% on brighter energy demand prospects amid stimulus measures from the POBC. Property developers also joined the rally after Credit Suisse raised rating on the Hong Kong real estate sector to ‘overweight'. Cheung Kong Holdings and China Resources Land moved higher by 0.70% and 1.79%. Lenders advanced 1.14% on POBC moves, with Bank of China and Bank of Communications adding 1.38% and 1.56%.


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