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4 hours ago
Real estate stocks push Hang Seng to be biggest loser among Asian benchmarks
Hong Kong’s Hang Seng Index fell more than 2% led by real estate stocks after the People’s Bank of China kept its one-year and five-year loan prime rates unchanged at 3.45% and 4.2%, respectively.
The biggest decliner on HSI was real estate developer China Resources Land, which plunged 9.54%.
The list of biggest losers also includes residential real estate services investment company Longfor Group (down 5.99%) and hot pot chain Hai Dilao (down 6.27%).
7 hours ago
Waiting for China’s LPR decision, market expected to remain unchanged
Investors will be watching for an update on the one-year and five-year loan prime rates from the Central Bank of China at around 9:15 a.m. Singapore time.
The one-year LPR is currently 3.45% and the five-year LPR is 4.2%, and the market expects the People’s Bank of China to keep interest rates unchanged.
The People’s Bank of China surprised market participants last week by keeping the interest rate on one-year medium-term lending facility (MLF) loans worth about 995 billion yuan ($138.84 billion) unchanged at 2.50%.
“The market expects the one-year and five-year LPR to be flat at 3.45% and 4.2%, respectively,” Commerzbank analysts said in a note to clients, at the same time that China’s foreign direct investment is likely to increase in 2023. He also noted that in 2017, the industry recorded the largest annual decline since 2009.
Commerzbank said direct investment in China fell by 8% in Chinese yuan terms last year, due to the country’s economic slowdown, high global interest rates, rising regulatory and geopolitical risks, He said that Western countries’ hard-line stance toward the technology sector is one of the reasons for this.
— Shreyashi Sanyal
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