- Hang Seng Index advances 1 per cent as China’s central bank floods banking system with more liquidity amid Evergrande’s debt crisis
- CNOOC rallies on US$5.4 billion stock offering plan while Huobi paces losses among cryptocurrency-related stocks on crackdown
Iris Ouyang
Published: 10:52am, 27 Sep, 2021
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 per cent to 24,433.52 as of 11.15am local time, after losing 3 per cent last week. The Hang Seng Tech Index added 0.2 per cent, while the Shanghai Composite Index declined 0.8 per cent.
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 3.7 per cent and China Merchants Bank gaining 3.3 per cent. State-controlled oil explorer CNOOC surged 6.4 per cent after announcing a plan to raise about 35 billion yuan through a listing in Shanghai. Meituan jumped 4 per cent.
China Evergrande added 0.9 per cent while its EV unit slumped 14 per cent after scrapping a plan to raise US$5 billion from a domestic stock offering as the carmaker depleted its cash to pay suppliers and contractors and halted some projects.
Cryptocurrency-related stocks slumped after Beijing banned all transactions in the latest crackdown on digital currencies. Huobi Technology plummeted 23 per cent while OKG Technology crashed 19 per cent and Meitu dropped 4.9 per cent.
Shandong Kaisheng New Materials began trading for the first time in mainland China, with the stock surging 557 per cent to 33.99 yuan.