Understanding the Market | HKEX Surges Over 5% Again, PBOC Introduces Multiple Major Policies, HSBC Says HKEX Will Benefit from Rate Cut Cycle

HKEX rose more than 5%, as of the time of publication, it rose by 5.48% to HKD 254.2, with a turnover of HKD 24.97 billion. On the news front, on September 24, the State Council Information Office held a press conference. The central bank announced a series of major policies: lowering the reserve requirement ratio and policy interest rates, driving down market benchmark interest rates; lowering existing home loan rates and unifying the minimum down payment ratio for home loans; creating new policy tools to support the development of the stock market. Zhongtai International previously stated that although China's 1-year and 5-year LPRs remained unchanged in September, there is still a possibility of the central bank lowering the reserve requirement or reducing existing home loan rates in the short term, and policy expectations are expected to continue to support the performance of Hong Kong stocks in the short term. In addition, the Federal Reserve announced a 50 basis point rate cut, and HSBC expects HKEX's revenue, market valuation, fundraising amount, etc. to benefit from the rate cut cycle