Hong Kong Stocks Rise Amid Hopes of Mortgage Rate Cuts by China

Hong Kong Stocks rose to a one-week high following speculations that the China may cut mortgage rates as early as the current month.

According to an SCMP report, Bank of America stated the yields have become attractive after a pullback, backing China's equity markets and resulting in a boost in investor sentiment.

The Hang Seng Index rose 0.75%, or 128.70 points, to close Friday's session at 17,369.09. The Hang Seng China Enterprises Index rose by 0.90%, or 53.99 points, to close at 6,071.52.

Citing unnamed sources, Bloomberg reported on Friday that there are hopes for rate cuts by China for up to 50 basis points as early as the current month in order to lower borrowing costs and encourage consumption. This was followed by a statement from the chief of China's central bank stating the bank's intentions to implement a supportive monetary policy to bring about an economic recovery.

Another Bloomberg report, with citation to unnamed sources, encouraged a rise in China's property shares after it reported that China may be inclined to cut interest rates on more than $5 trillion of outstanding mortgages this month, splurging the Hong Kong's Hang Seng mainland properties index to rise by 2.4% on midday yesterday.

In corporate news, Keymed Biosciences (HKG:2162) said China's National Medical Products Administration (NMPA) gave the marketing approval for Stapokibart. The company's stocks were up over 5% on Friday's close.

CGN Power (HKG:1816, SHE:003816) will redeem 1 billion yuan of ultra-short-term bonds on Sept. 23, The 169-day bonds, which were issued on April 3, have a 2% interest rate, the Chinese nuclear power provider said. The company's shares were up over 2% on Friday's close.