Global Bourses Bullish As China Cuts Interest Rates

Hong Kong: Asian shares rallied Tuesday after China cut key interest rates as part of its effort to fend off malaise worsened by the trade war. Shares in China’s CATL, the world’s largest maker of electric batteries, jumped about 13 per cent in its Hong Kong trading debut after it raised about $4.6 billion in the world’s largest IPO this year. Its shares traded in Shenzhen, mainland China’s smaller share market after Shanghai, edged 0.1 per cent higher after dipping earlier in the day. China’s central bank made its first cut to its loan prime rates in seven months in a move welcomed by investors eager for more stimulus as the world’s second largest economy feels the pinch of higher tariffs imposed by US President Donald Trump.

The People’s Bank of China cut the one-year loan prime rate, the reference rate for pricing all new loans and outstanding floating rate loans, to 3.00 per cent from 3.1 per cent. It cut the 5-year loan prime rate to 3.5 per cent from 3.6 per cent.