Chinese stocks trading in Hong Kong rose to the highest level in a week after the central bank cut interest rates for the third time in six months to support the economy.
Financial and power companies climbed in Hong Kong, with China Construction Bank Corp. and Huaneng Power International Inc. gaining at least 0.6 percent. Poly Real Estate Group Co. led a rally for property developers in Shanghai with a 1.1 percent advance. The People’s Bank of China said it will reduce the one-year lending rate 0.25 percentage point to 5.1 percent, and cut the one-year deposit rate by the same amount to 2.25 percent, effective Monday.
Hong Kong’s Hang Seng China Enterprises Index advanced for a second day, adding 0.6 percent to 14,126.73 at 9:59 a.m. The latest monetary policy loosening comes after data over the past week including exports and inflation signaled weakening demand and a world-beating rally in Chinese stocks lost momentum.
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