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CICC: Fed rate cut could bring greater resilience to HK stocks in stages

Bitget2024/09/22 13:50

CICC believes that, by the Fed's “unconventional” interest rate cut 50bp boost, Hong Kong stocks rose sharply last week, Hong Kong stocks because of the external liquidity is more sensitive, as well as the linked exchange rate system in Hong Kong to follow the interest rate cuts and so on, short-term compared to the A-shares reflect greater flexibility. Fed rate cuts can bring greater resilience in the phase, but long-term sustained gains still come from domestic growth and policy. Assuming that the U.S. bond rates 3.7-3.8%, the risk premium back to the recent annual average of 7%, corresponding to the HSI 19,500-20,500 points. More space is needed to follow the policy force to promote the repair of fundamentals.

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