US Federal Reserve Cuts‍ Interest Rates, Hong Kong’s Trend to Follow

2024-09-19 HKT 08:07

Financial Secretary Paul Chan Mo-po‍ stated that the US ⁤interest rate cut‍ is generally in ⁣line with market expectations, and the trend of Hong​ Kong interest rates depends on the flow of funds.

• Paul Chan: The U.S. interest‍ rate cut is generally in line with market expectations. The trend of Hong Kong interest⁣ rates depends ​on the flow of ⁣funds.

The U.S. Federal Reserve cut‍ interest‍ rates by 0.5%, the first rate cut‌ in more than four years.⁣ In Hong Kong, Financial ‍Secretary Paul Chan Mo-po said that the direction⁣ of⁣ Hong Kong’s interest rate trend ‌can be‌ expected to be closer ‍to ‌that of ‌the US interest rate. However, the speed and​ extent of Hong Kong’s interest rate adjustment will not only depend on US factors, but also local ⁢capital flows and market conditions‌ do not necessarily follow the same trend.

Chen Maobo​ said that the U.S. Federal ​Reserve’s interest rate cut was generally in line with market expectations, and the market also generally expected it to be the beginning of an ‌interest rate cut cycle. The U.S. Federal Reserve was cautious ⁤in⁤ its discussions. The local economic‍ situation was good, but job creation in the job market was slowing down, and the United States⁢ will have There are still many uncertainties due to factors such as the general election and⁤ geopolitics.

He also said that Hong Kong needs to​ continue‌ to pay​ careful attention. He assessed that​ when interest ⁤rates in the United States⁣ are lowered and interest rates​ in ‌Hong Kong are also lowered,‍ it will be beneficial to the operations of Hong Kong enterprises and have a positive impact on the asset market.

Chan ‍Mo-po, along with the SAR government‍ delegation, set‌ off for⁤ Beijing in the morning to prepare for attending the Beijing-Hong Kong trade‍ fair. ​He said that⁣ in ​addition⁤ to attending conferences, he will also carry out some‍ investment promotion⁢ work and visit enterprises. The goal is to attract more mainland‌ companies to Hong Kong, including⁣ innovation and technology companies, and to promote ‌Hong Kong to them as a regional ⁤supply chain management⁣ center to expand the international market.