Shares of China International Capital Corp (CICC) surged 16.08% on October 18th, as Hong Kong stocks rallied following the release of better-than-expected economic data from China and the announcement of fresh stimulus measures by the central bank.
Investor sentiment received a boost after China reported its GDP grew 4.6% in the third quarter, exceeding expectations. Industrial output, retail sales, and fixed asset investment for the January-September period also expanded at a faster pace than in August.
The People's Bank of China (PBOC) further fueled the market rally by signaling additional monetary easing steps. The central bank governor said China will cut the reserve requirement ratio (RRR) by 25 to 50 basis points before the end of 2024 to boost liquidity. The PBOC also announced a 20 to 25 basis point cut in the loan prime rate (LPR) effective October 21st.
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