Analysts: If the Federal Reserve gradually enters the interest rate cut cycle, the valuation of Hong Kong stocks is expected to increase significantly

After the Federal Reserve interest rate cuts are expected to heat up, the Hong Kong stock market has ushered in a big explosion. At the end of Friday, the Hang Seng Index rose by more than 2%, the Hang Seng Technology Index rose by 2.67%, and the state-owned enterprise index rose by 1.93%. Analysts pointed out that the Hong Kong stock market has been significantly affected by the Federal Reserve's monetary policy, and there is a clear and rapid feedback to it. If the Federal Reserve gradually enters the interest rate cut cycle, according to the Hong Kong dollar pegged to the US dollar, and Hong Kong's interest rate level is basically in line with the Federal Reserve trend, the valuation of Hong Kong stocks is expected to increase significantly. Guotai Junan Securities believes that the uncertainty of economic policy has declined, and the trend of overseas interest rate cuts is certain, and Hong Kong stocks will fluctuate upward. Specifically, Secondly, pharmaceutical stocks that are more sensitive to interest rate costs are also expected to benefit from interest rate cut hype, capital costs will decline, pharmaceutical capital expenditures will increase investment, and overseas market business will tend to improve. (Brokerage China)