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 lower 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. The Hang Seng Index opened 153 points lower today at 17,798 points. The day-to-day decline extended to 327 points, or 1.8%, to 17,623 points. The China Enterprises Index fell 116 points, or 1.9%, to 6,030 points. The Hang Seng Technology Index fell 84 points, or 2.1% at 3,923 point. The market turnover was HK$ 108.5 bn. The chairman of Hongjiu Fruit (6689) extended the lock-up period for 12 months, and the share price rose 8% to HK$6.82.

Source: KGI Asia Investment Strategy

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