Hong Kong stocks clocked their best day in more than two months on Wednesday after China’s central bank said it will cut banks’ reserve ratio, a move expected to boost sentiment after a market meltdown earlier this week, while mainland stocks also bounced.
Mounting hopes that Chinese authorities would come to the rescue of the battered market with more measures and news of Jack Ma scooping up Alibaba Group shares also lifted overall market sentiment. China A-shares closed higher, but before the reserve requirement ratio cuts were announced.
Mounting hopes that Chinese authorities would come to the rescue of the battered market with more measures and news of Jack Ma scooping up Alibaba Group shares also lifted overall market sentiment. China A-shares closed higher, but before the reserve requirement ratio cuts were announced.
Shanghai stocks, which have hit five-year lows this week fuelled by concern about a weakening economy, jumped 1.8% on the day, while Hong Kong’s benchmark index soared by 3.6%, having endured its most volatile start to the year since 2020 and after plunging on Monday to 15-month lows.
China’s central bank will cut the reserve requirement ratio (RRR) for banks by 50 basis points from Feb. 5,…
