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<Research>HSBC Research: Decline in HIBOR Favors HK Stocks, Especially Property/ High-yield Sectors
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HIBOR recently fell to its lowest level since 2022, approaching a 3-year low, HSBC Global Research issued a research report saying. The low interest rate environment reduced borrowing costs for enterprises and consumers, particularly easing the burden of mortgage repayments. Historical data shows that low interest rates typically benefit the Hong Kong stock market, especially sectors like property, utilities and REITs. In the short term, HIBOR may rise due to carry trades and interventions by the Hong Kong Monetary Authority (HKMA) to maintain HKD's peg to USD, potentially leading to a short-term market correction, the report added. However, in the long run, rate cuts by the US Fed and ample local liquidity are expected to keep HIBOR at a lower level, supporting equity market performance. AASTOCKS Financial News Website: www.aastocks.com |
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