Shares of China International Capital Corp (CICC) surged 16.08% on October 18th, joining the broader rally in Hong Kong stocks fueled by better-than-expected economic data from China and fresh stimulus measures announced by the country's central bank.
The Hong Kong stock market received a significant 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, indicating resilience in the world's second-largest economy.
Contributing to the upbeat market sentiment, the People's Bank of China (PBOC) signaled additional monetary easing steps to support growth. The central bank governor stated that China will cut the reserve requirement ratio (RRR) by 25 to 50 basis points before the end of 2024 to boost liquidity. Furthermore, the PBOC announced a 20 to 25 basis point cut in the loan prime rate (LPR) effective October 21st.
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