According to Jinshi Data, the Hong Kong stock market has seen a big boom after expectations of a rate cut by the Federal Reserve increased. At the close of Friday, the Hang Seng Index surged by more than 2%, the Hang Seng Technology Index surged by 2.67%, and the State-owned Enterprise Index surged by 1.93%.
Analysts pointed out that the Hong Kong stock market is significantly affected by the Federal Reserve's monetary policy, and there is an obvious and rapid feedback to it. If the Federal Reserve enters an interest rate cut cycle, the valuation of Hong Kong stocks is expected to increase significantly.
Guotai Junan Securities believes that as economic policy uncertainty decreases and overseas interest rate cuts become a certainty, Hong Kong stocks will fluctuate upward. Real estate and pharmaceutical stocks are expected to benefit from the expected interest rate cuts, and the decline in funding costs will increase pharmaceutical capital expenditures, and overseas market business will improve.
