Bakehouse Set to Rise: 5 New Stores to Hit Hong Kong by 2025
- On Friday, September 20, 2024, the Bank of Hong Kong announced a 1/4% interest rate cut, surpassing market expectations.
- The interest rate cut is expected to boost property prices by 5% next year, according to Morgan Stanley.
- 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.
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.