[Zhenzhuo Institutional View] US Q3 GDP far exceeded expectations, Stock Connect recorded a net inflow of HKD 611 million on Tuesday

Market Commentary

The U.S. Commerce Department released the final revision of Q3 GDP, with annualized growth unexpectedly reaching 4.3%, far exceeding market expectations of 3.2%, mainly driven by strong consumer spending and export growth. This data directly pushed the S&P 500 to another all-time high. Macroscopically, this shows that under high interest rates, the U.S. economy far outperforms other major global economies, with significantly reduced recession risks. However, signs of economic overheating combined with sticky inflation data mean the Fed lacks urgency for aggressive rate cuts, and bond yields may remain high and volatile, while limiting liquidity easing space in emerging markets. Investors need to monitor whether corporate profit growth can sustainably absorb valuation pressures from high interest rates.

Southbound Stock Connect saw a net inflow of HKD 611 million on Tuesday, with $BABA-W(09988.HK) leading at HKD 1.36 billion, followed by $MEITUAN(03690.HK). $CHINA MOBILE(00941.HK) had the largest net outflow at HKD 1.98 billion, followed by Tencent Holdings (00700.HK).

Source: KGI Securities