14 November 2019

Bank plays soar on central bank cash spree

Banking stocks surged after the People’s Bank of China (PBoC) injected 13 billion yuan (US$2.13 billion) into the financial markets via its open market operations Tuesday, easing liquidity tightness. 

It was the first time the central bank had waded into the market since Oct. 15.

Hong Kong’s benchmark Hang Seng Index climbed 39 points or 0.18 percent to finish at 22,846. The Hang Seng China Enterprises Index closed 132 points or 1.29 percent higher at 10,390.

The Shanghai Composite Index fell five points to 2,128.

China’s central bank restarted its reverse repo program to inject cash into the market, boosting banking counters. Agricultural Bank of China (01288.HK) gained 3 percent, the best performer among China’s big five banks.

Industrial and Commercial Bank of China (01398.HK) and China Construction Bank (00939.HK) ended more than 2 percent higher on the day.

Internet and software stocks fell, with Tencent (00700.HK) losing 5 percent at one point before closing 3.3 percent lower.

However, mobile gaming stocks continued to shine. Game developer Boyaa Interactive International Ltd. (00434.HK) announced plans to go public in Hong Kong, aiming to raise US$133 million.

Selling pressure hit gambling plays, notably Galaxy Entertainment (00027.HK) and Sands China (01928.HK), which both lost 3.2 percent.

Wynn Macau (01128.HK) and MGM China Holdings (02282.HK) closed down 3.9 percent and 4.3 percent, respectively.

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