Hong Kong ‌Economy Sees‌ Boost with Interest Rate Cut

Bank of Hong Kong’s Interest Rate Cut ⁣Exceeds Expectations

On Friday, September ⁣20, 2024, the Bank of ⁣Hong ​Kong announced⁣ a⁣ 1/4% interest rate cut, surpassing‍ market expectations. This move is expected to​ have a positive impact on the economy, particularly in the property market.

Impact on the Property Market

The ⁣interest rate cut is expected to boost property prices by 5%⁤ next year, according to Morgan Stanley. The mortgage⁣ interest ⁣rate has dropped ⁢to 3.875%, resulting in a significant decrease in ⁢monthly​ payments for homeowners. For example, a 4.5 million⁤ borrowed amount would result in a monthly payment​ that is⁣ more than 600 yuan less.

Effects on the Stock Market

The‌ interest rate cut has also had a positive impact on the stock market, with Hong‍ Kong ​stocks rising above 18,000 and a turnover of⁢ 148.7 ‍billion U.S. dollars. The FTSE ⁤H share index rose another 9%.

Other Economic Developments

The Australian⁢ Institute ⁢of Certified​ Public Accountants has advocated for expanding⁢ the investment scope of Hong Kong’s new⁤ entry scheme.‌ Alibaba Cloud⁣ has launched Qwen 2.5, which includes​ over 100 open source models.

Business News

Bakehouse, a⁣ fuel software company, plans to open⁣ 5 new stores in Hong Kong by ‍the end of next​ year. Greater Bay Area Airlines’‍ Tokushima-Sendai route will go on sale ⁤this afternoon. Cathay Pacific Cargo​ has signed an agreement⁢ to make NorthLink private jets available.

Global Economic Trends

The Federal Reserve is ‌expected to cut ⁣interest​ rates by another 2 percentage ‌points before the end of 2026. The U.S. unemployment rate is forecast to​ be 4.4% this year, and‌ PCE ​inflation is lowered to 2.3%. The ⁤RMB has strengthened, and gold prices continue to top the ‌US exchange rate.

Market Analysis

Experts ‌predict⁢ a soft landing in the United States,‍ with indicators pointing to new highs. However, some ⁣analysts warn against rushing to follow the trend, citing the volatility of⁣ the market.

Property Market Trends

The average first-hand ⁢square foot price ‌in⁣ ONE JARDINE’S LOOKOUT is 17,900, and the lowest price ​per square foot in Happy ​Valley after the new regulations ⁢is 4.15 million. Developers are taking advantage ‌of the interest rate cut to ship property prices, with some units​ selling for as low as 3.99 ​million.