Hong Kong stocks rally after China surprise rate cut

By Laura He, MarketWatch

Shutterstock/leungchopan

Hong Kong rallied Monday, while other major Asian markets ended broadly higher.

HONG KONG (MarketWatch) — Hong Kong stocks ended sharply higher Monday, after the Chinese central bank announced a surprise rate cut Friday night.

The Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.96%  jumped 2%, while the Hang Seng China Enterprises Index or “H-share index” /zigman2/quotes/210598031/delayed CN:160462 -1.34%  rallied 3.8%.

The People’s Bank of China’s reduction of the benchmark one-year deposit and lending rates -- by 25 basis points and 40 basis points, respectively -- sent shares of mainland Chinese banks and property developers both sharply higher.

Among major banks, China Minsheng Banking Corp., Ltd. /zigman2/quotes/208095167/delayed HK:1988 +0.74%  climbed 3.9%, China Merchants Bank Co., Ltd. /zigman2/quotes/209899244/delayed HK:3968 -4.30%  advanced 3.2%, and Industrial and Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 0.00%  rose 2.4%.

Property shares gained even more, with China Vanke Co., Ltd. /zigman2/quotes/203851375/delayed HK:2202 -1.83%  soaring 13.3%, China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 -1.44%  surging 11%, Country Garden Holdings Co. Ltd. /zigman2/quotes/201681083/delayed HK:2007 -4.19%  spiking 10.5%, China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 -2.84%  leaping 10.4%, and Poly Property Group Co. Ltd. /zigman2/quotes/209766147/delayed HK:119 -2.06%  improving 8.8%.

Many other blue chips also headed higher, with telecoms giant China Mobile Ltd. /zigman2/quotes/200868736/delayed HK:941 +0.19%   up 2.2%, online major Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 -1.15%   rising 1.1%, and lender HSBC Holdings PLC /zigman2/quotes/202687335/delayed HK:5 -0.32%   underperforming the Hang Seng Index with a 0.6% gain.

On the Chinese mainland, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP -0.08%   finished up 1.9%.

Other major Asian markets also posted solid gains. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.30%  closed up 1.1%, while South Korea’s Kospi Composite Index /zigman2/quotes/210598069/delayed KR:180721 -0.69%  settled 0.7% higher. Japan markets were closed Monday for a public holiday.

/zigman2/quotes/210598030/delayed

Add to watchlist HK:HSI

Hang Seng Index

HK : Hong Kong Exchange

19,331.46

-186.83 -0.96%

Volume: 1.66M

Dec. 6, 2022 11:49a

/zigman2/quotes/210598031/delayed

Add to watchlist CN:HSCEI

Hang Seng China Enterprises Index

CN : Hong Kong Exchange

6,616.34

-89.95 -1.34%

Volume: 0.00

Dec. 6, 2022 11:49a

/zigman2/quotes/208095167/delayed

Add to watchlist HK:1988

China Minsheng Banking Corp. Ltd.

HK : Hong Kong

$ 2.72

+0.02 +0.74%

Volume: 6.74M

Dec. 6, 2022 11:47a

P/E Ratio

3.54

Dividend Yield

9.17%

Market Cap

$159.00 billion

Rev. per Employee

$6.27M

/zigman2/quotes/209899244/delayed

Add to watchlist HK:3968

China Merchants Bank Co. Ltd.

HK : Hong Kong

$ 40.10

-1.80 -4.30%

Volume: 13.08M

Dec. 6, 2022 11:49a

P/E Ratio

6.36

Dividend Yield

4.45%

Market Cap

$961.29 billion

Rev. per Employee

$5.55M

/zigman2/quotes/201401473/delayed

Add to watchlist HK:1398

Industrial & Commercial Bank of China Ltd.

HK : Hong Kong

$ 3.85

0.00 0.00%

Volume: 61.00M

Dec. 6, 2022 11:49a

P/E Ratio

3.17

Dividend Yield

8.91%

Market Cap

$1595.74 billion

Rev. per Employee

$3.85M

/zigman2/quotes/203851375/delayed

Add to watchlist HK:2202

China Vanke Co. Ltd.

HK : Hong Kong

$ 16.10

-0.30 -1.83%

Volume: 5.02M

Dec. 6, 2022 11:49a

P/E Ratio

6.85

Dividend Yield

7.10%

Market Cap

$227.73 billion

Rev. per Employee

$4.50M

/zigman2/quotes/205731176/delayed

Add to watchlist HK:0688

China Overseas Land & Investment Ltd.

HK : Hong Kong

$ 19.86

-0.29 -1.44%

Volume: 10.51M

Dec. 6, 2022 11:49a

P/E Ratio

4.99

Dividend Yield

5.84%

Market Cap

$221.63 billion

Rev. per Employee

$51.24M

/zigman2/quotes/201681083/delayed

Add to watchlist HK:2007

Country Garden Holdings Co. Ltd.

HK : Hong Kong

$ 2.97

-0.13 -4.19%

Volume: 246.87M

Dec. 6, 2022 11:49a

P/E Ratio

4.43

Dividend Yield

4.00%

Market Cap

$72.91 billion

Rev. per Employee

$5.41M

/zigman2/quotes/202417326/delayed

Add to watchlist HK:1109

China Resources Land Ltd.

HK : Hong Kong

$ 32.45

-0.95 -2.84%

Volume: 4.48M

Dec. 6, 2022 11:49a

P/E Ratio

6.40

Dividend Yield

5.21%

Market Cap

$239.60 billion

Rev. per Employee

$5.19M

/zigman2/quotes/209766147/delayed

Add to watchlist HK:0119

Poly Property Group Co. Ltd.

HK : Hong Kong

$ 1.90

-0.04 -2.06%

Volume: 4.27M

Dec. 6, 2022 11:47a

P/E Ratio

3.03

Dividend Yield

7.11%

Market Cap

$7.03 billion

Rev. per Employee

$4.61M

/zigman2/quotes/200868736/delayed

Add to watchlist HK:0941

China Mobile Ltd.

HK : Hong Kong

$ 53.10

+0.10 +0.19%

Volume: 14.78M

Dec. 6, 2022 11:49a

P/E Ratio

7.78

Dividend Yield

8.72%

Market Cap

$1050.62 billion

Rev. per Employee

$2.27M

/zigman2/quotes/204605823/delayed

Add to watchlist HK:0700

Tencent Holdings Ltd.

HK : Hong Kong

$ 310.40

-3.60 -1.15%

Volume: 14.47M

Dec. 6, 2022 11:49a

P/E Ratio

14.20

Dividend Yield

0.52%

Market Cap

$2811.54 billion

Rev. per Employee

$5.87M

/zigman2/quotes/202687335/delayed

Add to watchlist HK:0005

HSBC Holdings PLC (HK Reg)

HK : Hong Kong

$ 47.05

-0.15 -0.32%

Volume: 7.13M

Dec. 6, 2022 11:48a

P/E Ratio

10.07

Dividend Yield

4.46%

Market Cap

$946.50 billion

Rev. per Employee

$2.45M

/zigman2/quotes/210598127/delayed

Add to watchlist CN:SHCOMP

Shanghai Composite Index

CN : China: Shanghai

3,209.27

-2.54 -0.08%

Volume: 24.14B

Dec. 6, 2022 11:49a

/zigman2/quotes/210598100/delayed

Add to watchlist AU:XJO

S&P/ASX 200 Benchmark Index

AU : S&P ASX

7,303.40

-22.20 -0.30%

Volume: 388,931

Dec. 6, 2022 2:44p

/zigman2/quotes/210598069/delayed

Add to watchlist KR:SEU

KOSPI Composite Index

KR : Korea Exchange

2,402.63

-16.69 -0.69%

Volume: 224,911

Dec. 6, 2022 12:44p