Business
Impact of Potential November Fed Rate Cut on Hong Kong’s Stock Market and IPOs: A Shift Towards Asian Markets
How could a further reduction in the Fed rate this November impact the stock market and IPOs in Hong Kong?
A decrease in rates could lead investors to shift their attention from US dollar assets to those in Hong Kong and China, propelled by the recent stimulus from Beijing.
"A decrease in interest rates will cut down the total capital expenses for businesses, promoting expansion. This will positively impact the stock markets, as investors will be prompted to boost their equity asset investment," said John Lee Chen-kwok, the Vice Chairman and Co-Leader of Asian regional coverage at UBS.
The recent economic incentives introduced by China have also contributed to enhancing the performance of the market and have led to unprecedented levels of transactions. The favorable market conditions and trading liquidity are expected to promote Initial Public Offerings (IPOs) in Hong Kong in the upcoming months.
One hour and twenty
China declares a reduction in mortgage rates as a new strategy to stimulate economic growth.
The market has completely factored in a quarter-point reduction for November 7, as per probabilities gathered by CME Group from futures contracts. The likelihood of a half-point reduction has diminished, dropping to roughly 36% from 57% just a week prior.
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