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Shares of Chinese property developers are sliding across the board in Hong Kong, with Zhenro Property sliding 8.5%, Times China down 8.2%, Yuzhou Group falling 7.3%, KWG Group sliding more than 7%, and R&F Properties sliding nearly 6%.
A gauge of Hong Kong-listed Chinese developers, the Hang Seng mainland properties index, fell more than 3%, with Country Garden slumping by about 5%. About half the participants in a Reuters poll had forecast a deeper cut of at least 15 bps to the five-year rate.
The cut is disappointing for some forecasters who expected a deeper cut of at least 15 basis points to the 5-year LPR in order to shore up the sluggish property sector.
Earlier this morning, the People’s Bank of China cut the benchmark lending rate LPR by 10 basis points, marking the first cut of the rates in ten months. One-year LPR is cut to 3.55% from previous 3.65% and five-year LPR cut to 4.2% from previous 4.3%.
