Hong Kong Market falls as PBOC holds rate

21 Mar 2022 , 05:33 PM

Hong Kong share market finished lower for second straight session on Monday, 21 March 2022, as investors reacted to Chinas central bank decisions to hold an interest rate steady and the war in Ukraine raged on after rejecting Russias demand to surrender the besieged city of Mariupol.

At closing bell, the benchmark Hang Seng Index declined 0.89%, or 191.06 points, to 21,221.34. The Hang Seng China Enterprises Index was down by 1.66%, or 121.94 points, to 7,244.48.

The mixed finish of the city market came as Chinas central bank dashed hopes for an interest rate cut. The Peoples Bank of China kept its benchmark one-year loan prime rate unchanged at 3.7%, while the five-year LPR remained at 4.60% on Monday, even after a pledge by the government last week to support the domestic economy and financial markets.

Investors were in a bearish mood as various Chinas cities and provinces have been battling coronavirus outbreaks, which could disrupt an economy already facing headwinds from an uncertain global recovery and a property downturn.

Powered by Capital Market – Live News