HKEX Benchmark Hits Three-Month High as Mainland Banks Surge
Dou Shicong
DATE:  Jan 25 2019
/ SOURCE:  yicai

(Yicai Global) Jan. 25 -- The Hong Kong Hang Seng Index, which tracks the special administrative region's stock market, hit a new high of 27,482.3 at 10.36 a.m. on a strong performance from mainland banks listed in the city.

The index opened at 27,282.9, up 0.6 percent, before climbing to its highest figure since Oct. 3. It was at 27,450.82 as of 11.03 a.m.

Some of the biggest contributors were Industrial and Commercial Bank of China [HKG:1398], which was up 2.57 percent to HKD5.99 (76 US cents) a share as of 10.30 a.m.; China Merchants Bank [HKG:3698], which was 1.88 percent higher at HKD32.45; and Postal Savings Bank of China, which was up 1.81 percent at HKD4.5 a share.

Investor confidence in the lenders swelled after China's central bank, the People's Bank of China, cut the reserve requirement ratio for the second time this year today. The authority cut the rate by 0.5 point to match the trimming it made on Jan. 15. Analysts expect the cuts to release combined CNY750 billion in cash, offering more liquidity to banking system.

Editor: James Boynton

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Keywords:   Hong Kong,Hang Seng Index