Midea Group and Fed Rate Cut Continue to Drive Hong Kong's Developer Rally

Tuesday, 17 September 2024, 02:35

Midea Group and Federal Reserve expectations are driving Hong Kong stocks higher as developers rally. The Hang Seng Index hits a two-week high, reflecting optimism in the market.
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Midea Group and Fed Rate Cut Continue to Drive Hong Kong's Developer Rally

Midea Group and Fed Rate Cut Rally Hong Kong Stocks

Hong Kong stocks surged to a two-week high as local developers rallied in anticipation of a rate cut from the Federal Reserve. Appliance maker Midea Group made headlines with an 8% rise in its trading debut, hitting HK$59.20, marking it as the city's largest IPO in over three years.

Market Performance Highlights

  • The Hang Seng Index rose 1% to 17,603.94, its highest level since September 3.
  • Meituan climbed 1.1% to HK$127.90, while Lenovo and Li Auto also saw gains.
  • Developers CK Asset and Henderson Land posted increases, signaling strong market interest.

Investor Sentiment and Future Outlook

With traders now focusing on potential interest-rate cuts, investors' expectations of a half-point cut by the Fed have soared from 30% to 67% in the past week. This move could provide China with the flexibility to ease its monetary policy further, increasing the possibility of more stimulus.

Other Asian markets displayed mixed results, with the Nikkei 225 dropping 1.3% and the S&P/ASX 200 rising.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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