Key H-shr CN Banks Grow as CN Reportedly Trims Deposit Rates which May Stabilize Spreads

　　Regarding yesterday (22nd)'s rumor that China will lower the deposit interest rates, the market expects the interest rate spreads of China banks will therefore narrow, and may maintain a trend of stabilization. This galvanized a number of China banks listed in HK to rise.

　　H-share Chinese banks thrived today (23rd). ABC (01288.HK) +0.070 (+2.059%) Short selling $85.65M; Ratio 33.792% , CCB (00939.HK) +0.070 (+1.292%) Short selling $284.05M; Ratio 31.777% , ICBC (01398.HK) +0.080 (+1.869%) Short selling $288.98M; Ratio 42.245% and BANKCOMM (03328.HK) +0.080 (+1.413%) Short selling $9.07M; Ratio 17.120% were each up more than 2%.

　　Related NewsCiti Forecasts PBOC's Cuts of OMO Rate & LPR to Have Neutral Effects on CN Banks' NIMs

　　The People's Bank of China (PBOC) had announced yesterday the adjustment of the interest rate for seven-day reverse repurchase operations in the open market from 1.8% to 1.7% with immediate effect, and decided to appropriately reduce or waive the pledges for medium-term lending facility (MLF) operations, and lowered the one-year and five-year loan prime rates (LPRs) by 10 bps to 3.35% and 3.85% respectively in July.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-23 12:25.)

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