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Tax cuts propel Chinese property stocks over 20%! Joining in?
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$Lion-OCBC Sec HSTECH S$ (HST.SG)$ HST may rise back to arou...

HST may rise back to around 0.89.
China's central bank has set up a swap facility to provide liquidity to institutional investors to buy stocks, part of a broad stimulus package announced earlier that ignited a rally in stocks.
The People's Bank of China will accept applications from eligible securities firms, funds and insurers starting Thu to obtain highly liquid assets such as government bonds and central bank bills if they provide certain collaterals, according to the bank’s statement. The size of the tool is RMB500 billion (US$70.6 billion or $92.44 billion) and can be expanded in the future, the monetary authority said.
PBOC Governor Pan Gongsheng unveiled the tool as part of a stimulus bonanza last month that signalled the government's intent to draw a line under the slowing economy. The moves fueled a world-beating rally that saw shares rise as much as 30%.
The funds obtained through the facility can only be used to invest in the stock market, Pan said at the time. The collaterals could be bonds, stock ETFs, CSI 300 constituent shares and other assets, the PBOC said Thu.
The latest announcement comes as the stock rally cools on the lack of immediate fiscal stimulus following a week-long national holiday. Investors are now awaiting a press briefing by Finance Minister Lan Fo'an on Sat to watch for clues of any steps to boost government borrowing and spending to shore up growth.
Serena Zhou, senior China economist at Mizuho Securities Asia Ltd., said the policy is expected to support the market, although she wouldn't link the timing to the stock market's performance.
Consumer spending remains sluggish, with tourists shelling out less money during the long holiday in Oct than before the pandemic.
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