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 +1.80%  jumped 2%, while the Hang Seng China Enterprises Index or “H-share index” /zigman2/quotes/210598031/delayed CN:160462 +1.78%  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 +3.04%  climbed 3.9%, China Merchants Bank Co., Ltd. /zigman2/quotes/209899244/delayed HK:3968 +6.34%  advanced 3.2%, and Industrial and Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 +5.61%  rose 2.4%.

Property shares gained even more, with China Vanke Co., Ltd. /zigman2/quotes/203851375/delayed HK:2202 +1.21%  soaring 13.3%, China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 +0.52%  surging 11%, Country Garden Holdings Co. Ltd. /zigman2/quotes/201681083/delayed HK:2007 +0.96%  spiking 10.5%, China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 +1.20%  leaping 10.4%, and Poly Property Group Co. Ltd. /zigman2/quotes/209766147/delayed HK:119 +0.83%  improving 8.8%.

Many other blue chips also headed higher, with telecoms giant China Mobile Ltd. /zigman2/quotes/200868736/delayed HK:941 +2.55%   up 2.2%, online major Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 +1.79%   rising 1.1%, and lender HSBC Holdings PLC /zigman2/quotes/202687335/delayed HK:5 +1.78%   underperforming the Hang Seng Index with a 0.6% gain.

On the Chinese mainland, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +1.47%   finished up 1.9%.

Other major Asian markets also posted solid gains. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.82%  closed up 1.1%, while South Korea’s Kospi Composite Index /zigman2/quotes/210598069/delayed KR:180721 +1.03%  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

29,620.98

+525.12 +1.80%

Volume: 1.79M

March 3, 2021 1:50p

/zigman2/quotes/210598031/delayed

Add to watchlist CN:HSCEI

Hang Seng China Enterprises Index

CN : Hong Kong Exchange

11,563.94

+202.59 +1.78%

Volume: 0.00

March 3, 2021 1:50p

/zigman2/quotes/208095167/delayed

Add to watchlist HK:1988

China Minsheng Banking Corp. Ltd.

HK : Hong Kong

HK$ 4.74

+0.14 +3.04%

Volume: 14.38M

March 3, 2021 1:50p

P/E Ratio

3.70

Dividend Yield

8.54%

Market Cap

HK$258.52 billion

Rev. per Employee

HK$6.45M

/zigman2/quotes/209899244/delayed

Add to watchlist HK:3968

China Merchants Bank Co. Ltd.

HK : Hong Kong

HK$ 62.05

+3.70 +6.34%

Volume: 17.89M

March 3, 2021 1:50p

P/E Ratio

15.28

Dividend Yield

2.12%

Market Cap

HK$1521.64 billion

Rev. per Employee

HK$5.29M

/zigman2/quotes/201401473/delayed

Add to watchlist HK:1398

Industrial & Commercial Bank of China Ltd.

HK : Hong Kong

HK$ 5.27

+0.28 +5.61%

Volume: 265.47M

March 3, 2021 1:50p

P/E Ratio

5.85

Dividend Yield

5.45%

Market Cap

HK$2165.67 billion

Rev. per Employee

HK$3.26M

/zigman2/quotes/203851375/delayed

Add to watchlist HK:2202

China Vanke Co. Ltd.

HK : Hong Kong

HK$ 33.35

+0.40 +1.21%

Volume: 6.20M

March 3, 2021 1:50p

P/E Ratio

8.44

Dividend Yield

3.35%

Market Cap

HK$451.96 billion

Rev. per Employee

HK$3.18M

/zigman2/quotes/205731176/delayed

Add to watchlist HK:0688

China Overseas Land & Investment Ltd.

HK : Hong Kong

HK$ 19.24

+0.10 +0.52%

Volume: 8.01M

March 3, 2021 1:50p

P/E Ratio

N/A

Dividend Yield

5.30%

Market Cap

HK$213.44 billion

Rev. per Employee

HK$30.79M

/zigman2/quotes/201681083/delayed

Add to watchlist HK:2007

Country Garden Holdings Co. Ltd.

HK : Hong Kong

HK$ 9.44

+0.09 +0.96%

Volume: 13.60M

March 3, 2021 1:50p

P/E Ratio

4.96

Dividend Yield

6.42%

Market Cap

HK$206.55 billion

Rev. per Employee

HK$3.60M

/zigman2/quotes/202417326/delayed

Add to watchlist HK:1109

China Resources Land Ltd.

HK : Hong Kong

HK$ 37.85

+0.45 +1.20%

Volume: 8.86M

March 3, 2021 1:49p

P/E Ratio

8.75

Dividend Yield

3.15%

Market Cap

HK$258.85 billion

Rev. per Employee

HK$3.68M

/zigman2/quotes/209766147/delayed

Add to watchlist HK:0119

Poly Property Group Co. Ltd.

HK : Hong Kong

HK$ 2.43

+0.02 +0.83%

Volume: 6.23M

March 3, 2021 1:49p

P/E Ratio

9.66

Dividend Yield

8.60%

Market Cap

HK$8.75 billion

Rev. per Employee

HK$1.82M

/zigman2/quotes/200868736/delayed

Add to watchlist HK:0941

China Mobile Ltd.

HK : Hong Kong

HK$ 56.40

+1.40 +2.55%

Volume: 34.50M

March 3, 2021 1:50p

P/E Ratio

9.85

Dividend Yield

5.77%

Market Cap

HK$1153.79 billion

Rev. per Employee

HK$1.85M

/zigman2/quotes/204605823/delayed

Add to watchlist HK:0700

Tencent Holdings Ltd.

HK : Hong Kong

HK$ 710.50

+12.50 +1.79%

Volume: 8.85M

March 3, 2021 1:50p

P/E Ratio

50.62

Dividend Yield

0.17%

Market Cap

HK$6630.61 billion

Rev. per Employee

HK$6.80M

/zigman2/quotes/202687335/delayed

Add to watchlist HK:0005

HSBC Holdings PLC (HK Reg)

HK : Hong Kong

HK$ 45.85

+0.80 +1.78%

Volume: 17.24M

March 3, 2021 1:50p

P/E Ratio

30.63

Dividend Yield

2.54%

Market Cap

HK$925.25 billion

Rev. per Employee

HK$2.56M

/zigman2/quotes/210598127/delayed

Add to watchlist CN:SHCOMP

Shanghai Composite Index

CN : China: Shanghai

3,560.09

+51.50 +1.47%

Volume: 26.32B

March 3, 2021 1:50p

/zigman2/quotes/210598100/delayed

Add to watchlist AU:XJO

S&P/ASX 200 Benchmark Index

AU : S&P ASX

6,818.00

+55.70 +0.82%

Volume: 587,862

March 3, 2021 4:45p

/zigman2/quotes/210598069/delayed

Add to watchlist KR:SEU

KOSPI Composite Index

KR : Korea Exchange

3,075.13

+31.26 +1.03%

Volume: 2.04M

March 3, 2021 2:45p