Xiaomi Corp.'s shares skyrocketed 7.36% on Thursday, lifted by a broad surge in Hong Kong stocks following encouraging economic data from China and supportive monetary policy actions by the country's central bank.
The tech giant's rally was fueled by optimism surrounding China's resilient economic performance in the third quarter. The nation's GDP expanded 4.6% year-over-year, slightly exceeding expectations, while industrial output, retail sales, and fixed investment for the January-September period also surpassed forecasts. These positive data points instilled confidence in the Chinese economy's continued recovery.
Sentiment was further buoyed by a series of measures announced by the People's Bank of China (PBOC) aimed at bolstering liquidity and supporting growth. The central bank plans to cut the reserve requirement ratio by 25-50 basis points before the end of 2024 and reduce the loan prime rate by 20-25 basis points on October 21. Additionally, the PBOC 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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