Hong Kong stocks advanced after China’s central bank pumped more liquidity into the domestic banking system amid a liquidity crisis at Evergrande, the nation’s most-indebted property developer. Cryptocurrency -related stocks plunged on regulatory crackdown.
The Hang Seng Index gained 1.2 per cent to 24,478.01 as of 10.08am local time, after losing 3 per cent last week. The Hang Seng Tech Index rose almost 1 per cent, while the Shanghai Composite Index added 0.3 per cent to 3,622.46.
The People’s Bank of China pumped 100 billion yuan (US$15.5 billion) through open market operations on Monday, supplementing net liquidity injection of 510 billion yuan in the preceding six days.
Financial stocks rallied, with HSBC adding 2.1 per cent, Ping An Insurance rising 1.9 per cent and China Merchants Bank adding 1.7 per cent. State-controlled oil explorer CNOOC surged 4 per cent after announcing a plan to raise about 35 billion yuan through a listing in Shanghai. Hua Hong Semiconductor rose 3.4 per cent.
China Evergrande slipped 3.4 per cent while its EV unit slumped 15 per cent after scrapping a plan to raise as much as US$5 billion from a domestic stock offering as the group depleted its cash to pay suppliers and contractors.
Cryptocurrency-related stocks slumped after Beijing banned all transactions in the latest crackdown on digital currencies. Huobi Technology plummeted 31 per cent while OKG Technology crashed 19 per cent and Meitu dropped 4.3 per cent.
Shandong Kaisheng New Materials began trading for the first time in mainland China, with the stock surging 522 per cent to 32.10 yuan.Internet Explorer Channel Network