According to TechFlow, on September 22, Hong Kong Financial Secretary Paul Chan pointed out in his latest essay that the Federal Reserve cut interest rates by 50 basis points last week, the first rate cut in more than four years. Many major central banks around the world have also cut interest rates, reinforcing the financial market's expectations of a gradual decline in global interest rates. Paul Chan said that a loose financial environment is conducive to the asset market atmosphere and the business environment. Under the linked exchange rate system, Hong Kong's interest rate trend is expected to be roughly the same as that of the United States, but the specific speed and magnitude of the reduction will depend on local capital flows and market conditions.
He stressed that in a relatively favorable environment, Hong Kong needs to further increase its efforts to promote the local market and open up broader and more diversified sources of funds for Hong Kong. Chan Mo-po also mentioned that the Saudi Capital Market Authority recently approved the listing of the first ETF investing in Hong Kong stocks on the Saudi Stock Exchange, which will facilitate direct investment of Middle Eastern funds in Hong Kong stocks. Chan Mo-po plans to lead a delegation to visit the Middle East at the end of next month to promote deeper and broader exchanges and cooperation.
