Search

 

Cablegate: Hang Seng Rockets Up 13 Percent.

VZCZCXRO8942
RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC
DE RUEHHK #2003 3041032
ZNR UUUUU ZZH
R 301032Z OCT 08
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 6143
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS HONG KONG 002003

SIPDIS

STATE FOR EAP/CM AND EEB/OMA, TREASURY FOR OASIA

E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD HK CH
SUBJECT: Hang Seng Rockets Up 13 percent.

1. Following a moderate gain of 0.84 percent on Wednesday, the Hang
Seng Index jumped almost 13 percent on Thursday, to finish up 1628
points at 14,329, up 12.82 percent. The Federal Reserves 50 basis
point cut helped, but had been widely expected. The Chinese Central
Bank announcement that it would also cut its benchmark rates by 27
basis points undoubtedly helped Chinese stocks, but remarks by
Chinese Premier Wen Jiabao suggesting China would make "all out
efforts" to support Hong Kong's economy were the real market driver.


2. Wen promised to work with Hong Kong financial regulators on
contingency plans to handle risks; fast-track infrastructure
projects, including the HK-Macau-Zhuhai bridge project; guarantee
stable food supplies to Hong Kong; provide support for Hong
Kong-based SME's with operations in China; and extend the individual
traveler scheme to additional Chinese cities so Chinese tourists
will find it easier to come to Hong Kong.

3. Interbank liquidity loosened considerably for all tenures. HIBOR
on Thursday, October 30 was 0.7 for over night, up slightly from
down from 0.5 percent on Wednesday; 1. percent for one week,
unchanged; 2 percent for two weeks, unchanged from Wednesday; 2.45
percent for one month, down from 3.05 percent; 3 percent for two
months, down from 3.3 percent; 3.4 percent for three and six month
borrowing, down from 3.6 percent; 12 month loans dropped to 3.45
percent, also from 3.6 percent on Wednesday.

© Scoop Media

 
 
 
World Headlines

 


Palestinian Ministry of Health: Developments In The Health Situation During The Israeli Aggression On The Cities & Governorates Of The Gaza Strip
For the second day in a row, the Israeli aggression against the Gaza Strip continues by targeting overcrowded residential areas and neighborhoods, as the death toll rose to 13 citizens, including a 5-year-old girl and a 23-year-old woman... More>>


UN: Horn Of Africa Faces Most ‘Catastrophic’ Food Insecurity In Decades, Warns WHO

The World Health Organization (WHO) warned on Tuesday that the Greater Horn of Africa is experiencing one of the worst famines of the last 70 years... More>>

FAO: Warns 90 Per Cent Of Earth’s Topsoil At Risk By 2050
A full 90 per cent of the Earth’s precious topsoil is likely to be at risk by 2050, according to the UN Food and Agriculture Organization, FAO...
More>>


Somalia: ‘We Cannot Wait For Famine To Be Declared; We Must Act Now’
Rising acute food insecurity in Somalia has caused more than 900,000 people to flee their homes in search of humanitarian assistance since January last year, the Food and Agriculture Organization (FAO) has warned... More>>

UN: American West Faces Water And Power Shortages Due To Climate Crisis
Two of the largest reservoirs in the United States are at dangerously low levels due to the climate crisis and overconsumption of water, which could affect water and electricity supply for millions in six western states and Mexico, the UN Environment Programme (UNEP) warned on Tuesday... More>>



Singapore: UN Experts Call For Immediate Moratorium On Executions For Drug Offences

UN experts* today condemned the execution of Nazeri Bin Lajim, a 64-year-old Malay Singaporean national convicted of drug offenses and urged the Government of Singapore to halt plans to execute individuals on death row for drug related charges... More>>