Market Insight

Market Roundup

With the weakening of the mainland economy and the deterioration of domestic housing risks, the People's Bank of China announced that it would cut the 1-year LPR by 10 basis points to 3.45%, but the 5-year LPR remained unchanged at 4.2%, which was not as expected by the market. As market expected the 5-year LPR to cut by 15 basis points to 4.05%. The Hang Seng Index opened 153 points lower today to 17,798 points. The half-day decline extended to 248 points or 1.4% to 17,703 points; the China Enterprises Index fell 80 points or 1.3% to 6,066 point; the Hang Seng Technology Index fell 49 points or 1.2% at 3,958 point. The market turnover was HK$ 55.2 bn. The chairman of Hongjiu Fruit (6689) extended the lock-up period for 12 months, and the share price rose 12.1% to HK$7.06.

Source: KGI Asia Investment Strategy

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