Published on 05/20/2025 at 05:03
(Reuters) - China and Hong Kong stocks rose broadly on Tuesday, led by healthcare and consumer shares, as market sentiment improved after China cut key lending rates for the first time since October.
** At the close, China's blue-chip CSI300 Index was up 0.5%, while the Shanghai Composite Index gained 0.4%.
** Hong Kong's benchmark Hang Seng jumped 1.5%, hovering near a two-month high.
** China cut benchmark lending rates for the first time in seven months on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-U.S. trade war.
** With the recent substantial progress in the U.S.-China tariff negotiations and the announcement of rate cuts, market uncertainty has eased and risk appetite has rebounded, TF Securities said in a note.
** Healthcare stocks listed in Hong Kong and mainland A-shares advanced 2.6% and 1.4%, respectively.
** Shares of biotech firm 3 SBIO surged more than 30%, after the firm signed a licensing deal with U.S. drugmaker Pfizer.
** The consumer sector was another outperformer, with Hang Seng SCHK Consumer Discretionary Index gaining 1.2%.
** Raisah Rasid, global market strategist at J.P. Morgan Asset Management suggested investors, said China's comprehensive monetary stimulus package "underscores its focus on stimulating domestic growth and countering external downside risks".
** She suggested investors to diversify exposure with companies that supported by domestic consumption in Asia.
** Meanwhile, shares of Chinese electric vehicle battery giant CATL jumped on its first day of trading after the company raised $4.6 billion in its Hong Kong listing, the largest in the world this year.
** Hong Kong shares of CATL closed 16% higher.
** The smaller Shenzhen index ended up 0.8% and the start-up board ChiNext Composite index was higher by 0.77%.
 (Reporting by Summer Zhen; Editing by Sonia Cheema) 

Sumber : Reuters