Hong Kong banks fall after cenbank cuts interest rate after Fed move

Boc Hong Kong Holdings

04/03/2020 05:20

** The Hang Seng Finance Index  .HSNF  falls as much as 1.4%
to 35,652.06, a level not seen since Oct 2019    
    ** Hang Seng Bank  0011.HK  leads fall in banking stocks to
decline as much as 4.6% to HK$148.20, its weakest since Jan 2017
    ** The Hong Kong Monetary Authority (HKMA) lowered its base
rate charged through the overnight discount window by 50 basis
points to 1.5%, hours after the U.S. Federal Reserve delivered a
rate cut of the same margin  urn:newsml:reuters.com:*:nL4N2AX061
    ** "An interest rate cut will put pressure on interest
margin," said Steven Leung, a director at UOB Kay Hian in Hong
Kong, adding that bank stocks appear a bargain after the slide
    ** Hong Kong shares of HSBC  0005.HK  drop as much as 3.3%
to their lowest since Aug 2016, while BOC Hong Kong  2388.HK 
falls as much as 3.2% to a one-month low of HK$25.75     
    ** "Further developments of the coronavirus are still very
uncertain and financial markets will continue to see
considerable volatility," said HKMA's Chief Executive Eddie Yue
    ** HKMA says it will maintain orderly operation of Hong
Kong's money and foreign exchange markets, and ensure stability
of the Hong Kong dollar   
    ** The Hong Kong benchmark index  .HSI  gains 0.1%


 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)