火牛棋牌首页

621x74 (2).gif

China Daily

HongKong> Opinion> Content
Monday, October 28, 2019, 08:42
Outside the box
By Peter Liang
Monday, October 28, 2019, 08:42 By Peter Liang

Expectations of a trade deal, even if it’s phase one, between the United States and China has lifted investors’ sentiment which was further boosted by the prospect of another US interest rate cut later in the week.

The benchmark index of Hong Kong stocks jumped more than 300 points in early trading, reversing the down trend in pervious weeks. These developments would be too late to help avert the widely expected recession in 2019. But they could provide the impetus of a speedy recovery in the first half of 2020 and beyond.

The social unrest that has been raging for more than four months is showing no sign of abating. Its impact on the economy is limited mainly to the tourism and retail sectors which account for a relatively small share of the GDP. The government has introduced a slew of fiscal measures to cushion the hardships faced by small businesses and their employees.

For investors, the focus at the moment is on the interest rate front where analysts believe there is a more than 90 percent chance that the US Federal Reserve will cut rates by 25 basis point at its policy meeting at the end of the month. That would be the third time the Fed cut its benchmark rate in the current round of monetary easing which was described by Fed Chairman Jerome Powell as a mid-cycle adjustment.

Lowering bank interest rate is good for stock investment. In Hong Kong, borrowing cost is of particular importance to the highly geared property market where so much personal wealth is tied to the value of homes.

In fact, the property market boom that drove home prices to among the highest in the world was fueled largely by easy credit during the time when real interest rates had stayed at negative levels for a long period of time. Property agents predicted that the resumption of the down trend in interest rates will encourage many more families to buy properties.

The expected surge in demand for homes will not only benefit the property developers but also many public listed companies that are either directly or indirectly involved in the real estate business.

Of course, the trade deal people expected may not materialize and there is still a chance the Fed would fail to deliver a cut. But such concerns don’t seem to have fazed too many bargain hunters.


Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !
火牛棋牌首页

5176娱乐官方

欧洲杯竞猜平台

佰万棋牌游戏中心

网络赌博注册平台

dota2投注官网

酷乐棋牌游戏中心

网上赌场app

送彩金棋牌首页

国王棋牌大厅

西甲竞彩官网

新世纪棋牌

lol电竞平台

bobo棋牌

金爵娱乐首页

网上棋牌游戏中心