What would another Fed rate cut in November mean for Hong Kong’s stock market and IPOs?
“A lower interest-rate environment will lower overall capital costs for companies and stimulate growth, which will benefit stock markets, as investors will look to increase their equity asset allocation,” said John Lee Chen-kwok, vice-chairman and co-head of Asia country coverage at UBS.
“China’s recent stimulus measures have also helped boost market performance and pushed turnover to record highs. The positive market environment and trading liquidity will help to boost IPOs in Hong Kong in the coming months.”
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China announces mortgage rate cut as part of new measures to boost economy
China announces mortgage rate cut as part of new measures to boost economy
The market has fully priced in a quarter-point cut on November 7, according to odds compiled by CME Group based on futures contracts. The odds of a 50-basis-point cut weakened to about 36 per cent from 57 per cent a week ago.
