Xiaomi Corp's shares soared 5.19% on Thursday, riding a broad rally in Hong Kong stocks fueled by encouraging economic data from China and supportive monetary policy moves by the country's central bank.
China's economy expanded 4.6% year-over-year in the third quarter, slightly exceeding expectations, while industrial output, retail sales, and fixed investment for the January-September period also surpassed forecasts. These positive data points boosted investor confidence in the Chinese economy's resilience.
Adding to the optimism, the People's Bank of China (PBOC) unveiled a series of measures aimed at bolstering liquidity and supporting growth. The central bank plans to cut the reserve requirement ratio further by 25-50 basis points before the end of 2024 and reduce the loan prime rate by 20-25 basis points on October 21. It also launched a special re-lending program with an initial quota of 300 billion yuan at an interest rate of 1.75%.
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