Hong Kong stock markets: Hang Seng closed up 596.56 points as China cut interest rates on loans

The Hang Seng Index, the Hong Kong stock market closed higher today. In response, the People’s Bank of China (PBOC) lowered its five-year lending interest rate (LPR) by 0.15% to 4.45% from 4.6% today, the biggest cut since 2019 and more than analysts in the PO. A Bloomberg News poll forecast a 0.10% drop.

The Hang Seng Index closed at 20,717.24, up 596.56, or +2.96%.

Doing so will lower mortgage borrowing costs. and may help boost weaker loan demand due to the collapse of the real estate market and the impact of lockdown measures to control the spread of COVID-19 The 5-year LPR rate is an indicator of the direction of interest rates of the Chinese household sector. This includes mortgage loan interest rates.


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