Global​ Economy Sees Boost Amid Interest Rate Cuts ⁢and RRR⁣ Reductions

Market Analysis

Wednesday, September 25, 2024

A ⁤combination ‌of RRR cuts and interest rate cuts ​is expected to release‍ trillions of dollars ⁢into the market, providing a much-needed boost to the economy. This move⁣ is anticipated to save 50 million households‍ in ⁣Mainland⁣ China approximately ⁢150 billion yuan in‍ housing ⁢payments, thereby promoting consumer investment and increasing returns on A-share market value management.

Market Impact

The first installment of‌ the unified second-home​ loan has been reduced to 15%, leading to⁣ a surge in Hong Kong stocks, with ⁢a 753-point ⁤increase, and ‍a rebound of 19,000 points. A-shares also rose by 4%, benefiting from the central government’s bailout, marking the largest ‍increase in more than 4 years.

Industry Updates

Brokerage firms ⁢have ⁢downplayed the purchase of​ Yonghui Miniso, which fell 24%. S&P has stated that the Bank of Hong ​Kong’s commercial real estate credit risk is controllable. Meanwhile, Cathay Pacific is set to launch a new flight service in April next year, and Dallas Passenger Transport has announced a ⁢significant development.

Global Economy

Mainland ⁢China is working to ​stabilize its economy, leading to high demand for copper prices over the past two months. Oil prices have risen by more‍ than 2%, and​ iron ore has increased by 6%. Boeing has also raised wages by 30%, although the union has expressed dissatisfaction.

Expert ⁤Insights

Zhang Zhaocong‌ has noted that insurance stocks ⁤have ‌outperformed, with PICC being​ the strongest. Jiang Jing has⁤ expressed concerns that economic recovery may be a problem, while Liu Siming has ⁣advised​ capturing the rising trend of A-shares ⁣and buying China AMC CSI‌ 300.

Real Estate Market

The largest sales ‌after ⁣the interest ⁢rate cut have‍ been reported, with⁢ YOHO​ Hub selling ‌120⁢ units on ⁤Saturday and ONE​ JARDINE’S LOOKOUT selling 85 units ​in the first round on Saturday. HSBC has presumptively built the Ngau Chi Wan original nursing home project, and the ​owner of Fai Mansion’s 3-bedroom has sold⁤ for 40 million, with an expected loss⁤ of 25%.