HONG KONG (AFP) – Hong Kong stocks rallied more than three per cent in the afternoon on Friday as traders welcomed more measures from China to boost the economy and data showing growth beating expectations.
The Hang Seng Index jumped 3.18 per cent, or 637.78 points, to 20,716.88.
The Shanghai Composite Index jumped 2.91 per cent, or 92.18 points, to 3,261.56 and the Shenzhen Composite Index on China’s second exchange piled on 4.09 per cent, or 74.98 points, to 1,906.86.
China said the economy expanded 4.6 per cent year-on-year in the third quarter, down from 4.7 in the previous three months – though more than forecast in a survey of analysts by AFP.
But traders cheered news that the People’s Bank of China had launched a facility to provide greater liquidity and boost share buybacks.
The bank’s chief Pan Gongsheng also said officials were considering another cut to the amount commercial lenders must hold in reserve.
Meanwhile, state media said top banks had cut rates on yuan deposits Friday for the second time this year as part of a move to boost lending.
That came as data showed retail sales – a gauge of consumer spending – and industrial output rose more than expected in September.
