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May 11, 2015, 4:39 a.m. EDT

Chinese stocks rally as PBOC cuts interest rates again

Japanese stocks close at highest level in nearly two weeks

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By Laura He, MarketWatch


Bloomberg
Hong Kong and Shanghai stocks rise for a second session.

HONG KONG (MarketWatch) — Chinese stocks gained Monday for the second session in a row, bolstered by the third rate cut from the Chinese central bank in six months.

Meanwhile, Japanese shares posted a solid advance to reach their highest closing level in nearly two weeks.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.10%   rose 0.5%, up for a second straight session, with the mainland-China-tracking Hang Seng China Enterprises /zigman2/quotes/210598031/delayed CN:160462 -0.06%  gaining 1%. On the mainland itself, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP -0.13%  jumped 3%, adding to a 2.3% rise at the end of last week.

After China released weaker-than-expected inflation data Saturday, the People’s Bank of China on Sunday announced a quarter-percentage-point cut for both the benchmark deposit and lending rates, citing “still heavy downward pressures facing the economy.” The PBOC also lifted its ceiling on banks’ deposit rates as part of its campaign on interest-rate liberalization.

Read: China’s high-risk interest-rate cut

In Hong Kong, major Chinese banks recorded substantial gains across the board, with China Minsheng Banking Corp. /zigman2/quotes/208095167/delayed HK:1988 +2.03%   /zigman2/quotes/203910009/delayed CN:600016 -0.20%   /zigman2/quotes/200749234/delayed CMAKY -1.79%  climbing 2.2%, Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 +0.96%   /zigman2/quotes/201568493/delayed BACHY +0.80%   /zigman2/quotes/209359942/delayed CN:601988 -0.30%   up 1.4%, and Bank of Communications Co. /zigman2/quotes/203442771/delayed HK:3328 +1.19%   /zigman2/quotes/208048873/delayed BKFCF 0.00%   /zigman2/quotes/207155262/delayed CN:601328 +0.41%   higher by 1.3%.

In Shanghai, top gainers among banking shares included China Citic Bank Corporation Ltd. /zigman2/quotes/206411273/delayed CN:601998 0.00%   /zigman2/quotes/205809997/delayed HK:998 +1.42% , up 2.4%, and Bank of China Ltd., which added 1.6%.

Property stocks also mostly advanced. In Hong Kong, index component China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 +0.40%   /zigman2/quotes/210412581/delayed CAOVF -2.30%   was up 4.1%, and China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 -0.40%   /zigman2/quotes/201656413/delayed CRBJF 0.00%   — also a Hang Seng Index constituent — climbed 1.9%. In the property sector in Shanghai, Huayuan Property Co. Ltd. /zigman2/quotes/204155155/delayed CN:600743 -1.85%   soared limit-up by 10%, and China Calxon Group Co., Ltd. /zigman2/quotes/205767260/delayed CN:000918 +2.97%  popped 4.4% higher.

Meanwhile, tech stocks in Hong Kong extended a previous rally fueled by a Thursday statement by China’s State Council (China’s cabinet) that the nation will “strive to develop the e-commerce industry and cultivate a new impetus to power the economic growth.” A Monday report by the state-run China Fund newspaper that Chinese mutual funds have been doing close research on Internet-finance-related companies may also have helped lift the sector.

Index heavyweight and Chinese online major Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 -0.72%   /zigman2/quotes/207908563/delayed TCEHY -0.39%  rose 3% ahead of the release of its earnings results on Wednesday. Online-game developer NetDragon Websoft Inc. /zigman2/quotes/208746366/delayed HK:777 -0.93% soared 11%, and rival Baioo Family Interactive /zigman2/quotes/210039816/delayed HK:2100 -2.25%  surged 9.7%. Software developer Kingdee International Software Group /zigman2/quotes/202787359/delayed HK:268 -0.78%   /zigman2/quotes/210110520/delayed KGDEF -0.60%  added 6.3%, and Kingsoft Corp. /zigman2/quotes/208824086/delayed HK:3888 +1.19%   /zigman2/quotes/200487124/delayed KSFTF +3.09%  was up 6.1%.

Other Asian markets were mostly higher. Japan’s Nikkei Average /zigman2/quotes/210597971/delayed JP:NIK -1.97%  improved by 1.3% to 19,620.91, its best close since late April. The Topix /zigman2/quotes/210598092/delayed JP:180460 -1.55%   moved up 0.7%.

The yen /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0786%  weakened slightly, with the dollar buying ¥119.98, compared with ¥119.84 late Friday in New York.

Seoul’s Kospi Composite Index /zigman2/quotes/210598069/delayed KR:180721 +0.68%  tacked on 0.6%, while Sydney’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.68%  edged 0.2% lower.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
29,135.73
+29.58 +0.10%
Volume: 2.01M
April 20, 2021 4:08p
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/zigman2/quotes/210598031/delayed
CN : Hong Kong Exchange
11,085.87
-7.08 -0.06%
Volume: 0.00
April 20, 2021 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,472.94
-4.61 -0.13%
Volume: 28.53B
April 20, 2021 3:01p
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/zigman2/quotes/208095167/delayed
HK : Hong Kong
HK$ 4.52
+0.09 +2.03%
Volume: 33.26M
April 20, 2021 4:08p
P/E Ratio
5.19
Dividend Yield
5.63%
Market Cap
HK$243.29 billion
Rev. per Employee
HK$6.42M
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/zigman2/quotes/203910009/delayed
CN : China: Shanghai
¥ 4.94
-0.01 -0.20%
Volume: 53.22M
April 20, 2021 3:00p
P/E Ratio
6.30
Dividend Yield
4.31%
Market Cap
¥204.64 billion
Rev. per Employee
¥5.72M
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/zigman2/quotes/200749234/delayed
US : U.S.: OTC
$ 5.50
-0.10 -1.79%
Volume: 4.00
April 19, 2021 3:36p
P/E Ratio
4.94
Dividend Yield
7.73%
Market Cap
$31.28 billion
Rev. per Employee
$828,852
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/zigman2/quotes/204682472/delayed
HK : Hong Kong
HK$ 3.14
+0.03 +0.96%
Volume: 342.72M
April 20, 2021 4:08p
P/E Ratio
4.26
Dividend Yield
7.50%
Market Cap
HK$1082.72 billion
Rev. per Employee
HK$3.34M
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/zigman2/quotes/201568493/delayed
US : U.S.: OTC
$ 10.04
+0.08 +0.80%
Volume: 3,935
April 20, 2021 10:01a
P/E Ratio
4.23
Dividend Yield
11.77%
Market Cap
$139.41 billion
Rev. per Employee
$427,123
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/zigman2/quotes/209359942/delayed
CN : China: Shanghai
¥ 3.31
-0.01 -0.30%
Volume: 120.66M
April 20, 2021 3:00p
P/E Ratio
5.05
Dividend Yield
5.95%
Market Cap
¥910.69 billion
Rev. per Employee
¥2.95M
loading...
/zigman2/quotes/203442771/delayed
HK : Hong Kong
HK$ 5.09
+0.06 +1.19%
Volume: 22.09M
April 20, 2021 4:08p
P/E Ratio
4.54
Dividend Yield
7.44%
Market Cap
HK$401.15 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208048873/delayed
US : U.S.: OTC
$ 0.58
0.00 0.00%
Volume: 0.00
April 5, 2021 3:27p
P/E Ratio
4.32
Dividend Yield
N/A
Market Cap
$48.64 billion
Rev. per Employee
$786,734
loading...
/zigman2/quotes/207155262/delayed
CN : China: Shanghai
¥ 4.92
+0.02 +0.41%
Volume: 78.78M
April 20, 2021 3:00p
P/E Ratio
5.23
Dividend Yield
6.44%
Market Cap
¥337.41 billion
Rev. per Employee
¥5.43M
loading...
/zigman2/quotes/206411273/delayed
CN : China: Shanghai
¥ 5.38
0.00 0.00%
Volume: 25.07M
April 20, 2021 3:00p
P/E Ratio
6.64
Dividend Yield
4.72%
Market Cap
¥233.66 billion
Rev. per Employee
¥5.84M
loading...
/zigman2/quotes/205809997/delayed
HK : Hong Kong
HK$ 4.29
+0.06 +1.42%
Volume: 45.76M
April 20, 2021 4:08p
P/E Ratio
4.44
Dividend Yield
7.08%
Market Cap
HK$277.80 billion
Rev. per Employee
HK$6.58M
loading...
/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 20.00
+0.08 +0.40%
Volume: 11.92M
April 20, 2021 4:08p
P/E Ratio
4.46
Dividend Yield
5.90%
Market Cap
HK$217.13 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210412581/delayed
US : U.S.: OTC
$ 2.55
-0.06 -2.30%
Volume: 35.00
March 31, 2021 1:53p
P/E Ratio
4.41
Dividend Yield
N/A
Market Cap
$29.46 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202417326/delayed
HK : Hong Kong
HK$ 37.15
-0.15 -0.40%
Volume: 6.31M
April 20, 2021 4:08p
P/E Ratio
7.88
Dividend Yield
3.98%
Market Cap
HK$265.27 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201656413/delayed
US : U.S.: OTC
$ 4.70
0.00 0.00%
Volume: 0.00
April 15, 2021 1:54p
P/E Ratio
7.73
Dividend Yield
N/A
Market Cap
$34.16 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204155155/delayed
CN : China: Shanghai
¥ 2.12
-0.04 -1.85%
Volume: 12.00M
April 20, 2021 3:00p
P/E Ratio
6.65
Dividend Yield
5.66%
Market Cap
¥5.04 billion
Rev. per Employee
¥7.88M
loading...
/zigman2/quotes/205767260/delayed
CN : China: Shenzhen
¥ 6.93
+0.20 +2.97%
Volume: 24.77M
April 20, 2021 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
¥12.02 billion
Rev. per Employee
¥300,784
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/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 622.50
-4.50 -0.72%
Volume: 15.23M
April 20, 2021 4:08p
P/E Ratio
33.31
Dividend Yield
0.26%
Market Cap
HK$5898.24 billion
Rev. per Employee
HK$10.55M
loading...
/zigman2/quotes/207908563/delayed
US : U.S.: OTC
$ 79.30
-0.31 -0.39%
Volume: 335,864
April 20, 2021 10:17a
P/E Ratio
32.91
Dividend Yield
0.23%
Market Cap
$759.43 billion
Rev. per Employee
$1.36M
loading...
/zigman2/quotes/208746366/delayed
HK : Hong Kong
HK$ 21.25
-0.20 -0.93%
Volume: 1.04M
April 20, 2021 4:08p
P/E Ratio
11.01
Dividend Yield
2.35%
Market Cap
HK$11.45 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210039816/delayed
HK : Hong Kong
HK$ 2.17
-0.05 -2.25%
Volume: 10.06M
April 20, 2021 4:08p
P/E Ratio
18.71
Dividend Yield
N/A
Market Cap
HK$5.97 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202787359/delayed
HK : Hong Kong
HK$ 25.30
-0.20 -0.78%
Volume: 6.59M
April 20, 2021 4:08p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
HK$82.45 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210110520/delayed
US : U.S.: OTC
$ 3.34
-0.02 -0.60%
Volume: 0.00
April 9, 2021 3:26p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.21 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208824086/delayed
HK : Hong Kong
HK$ 55.40
+0.65 +1.19%
Volume: 4.91M
April 20, 2021 4:08p
P/E Ratio
6.90
Dividend Yield
0.36%
Market Cap
HK$71.79 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200487124/delayed
US : U.S.: OTC
$ 6.83
+0.21 +3.09%
Volume: 774.00
April 19, 2021 9:30a
P/E Ratio
6.59
Dividend Yield
N/A
Market Cap
$9.05 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
29,100.38
-584.99 -1.97%
Volume: 0.00
April 20, 2021 3:15p
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/zigman2/quotes/210598092/delayed
JP : Tokyo Exchange (TOPIX)
1,926.25
-30.31 -1.55%
Volume: 0.00
April 20, 2021 3:00p
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/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
108.2250
+0.0850 +0.0786%
Volume: 0.0000
April 20, 2021 10:32a
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,220.70
+21.86 +0.68%
Volume: 1.30M
April 20, 2021 3:30p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,017.80
-47.80 -0.68%
Volume: 554,640
April 20, 2021 5:07p
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Laura He is a MarketWatch reporter based in Hong Kong. Follow Laura on Twitter at: @lauraliuhe.

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