01:08

Hong Kong: US Fed rate cut to boost Hong Kong stocks: expert

Content Partner Cover Image
Content Partner Profile Image
Uploaded by a Newsflare content partner

Buy video

Storyline: The Hong Kong stock market is poised to receive a fresh boost from the U.S. Federal Reserve rate cut, an financial analyst said Thursday. The U.S. Federal Reserve on Wednesday decided to lower the target range for the federal funds interest rate by 25 basis points to 3.5 to 3.75 percent, marking its third rate cut this year. Experts believe that, theoretically, a Fed rate cut could have a relatively positive impact on Hong Kong stocks. Following the Fed rate cut, the Hong Kong Monetary Authority typically adjusts its base rate in tandem. Lower interest rates help enhance overall market liquidity. Coupled with diminished appeal of dollar-denominated assets, capital tends to flow out in search of market troughs. Hong Kong stocks, with their relatively low valuations, often attract such capital inflows. "For any emerging market or stock market in the Asia-Pacific region, if its valuations are attractive, I believe this will certainly benefit the overall market. This isn't just for Hong Kong stocks, we see mainland A-shares benefiting as well," said Ronald Wan, chief executive of the investment banking with Partners Capital International Limited, a firm dealing in securities and advising on corporate finance. Experts also say that a lower interest rate environment helps alleviate debt pressures for businesses and households, potentially boosting consumption and investment. The market widely views rate cuts as positive for the business environment, enhancing market liquidity and supporting the long-term development of capital markets. Shotlist: FILE: Hong Kong - Date Unknown: 1. Various of Exchange Square, which houses Hong Kong Exchanges and Clearing Limited (HKEX); screens showing stock market information FILE: Hong Kong - Oct 2024: 2. Various of interior of HKEX Hong Kong - Dec 11, 2025: 3. SOUNDBITE (Chinese) Ronald Wan, chief executive, investment banking, Partners Capital International Limited: "For any emerging market or stock market in the Asia-Pacific region, if its valuations are attractive, I believe this will certainly benefit the overall market. This isn't just for Hong Kong stocks, we see mainland A shares benefiting as well." FILE: Hong Kong - Date Unknown: 4. Various of statue, traffic, pedestrians 5. Aerial shot of cityscape 6. Various of ships sailing, buildings [Restrictions: No access Chinese mainland]

Categories

Tags

From the blog

Stories not Stock: 3 Reasons Why You Should Use UGC Instead of Stock Video

Video content is an essential part of a brand’s marketing strategy, and while stock footage has been a reliable go-to in the past, forward-thinking companies are looking to user-generated content for their video needs.

View post
Content Partner Cover Image
Content Partner Profile Image
Uploaded by a Newsflare content partner

Buy video