Hong Kong Stock Market Update | JD-SW rises nearly 7%, leading the technology and internet stocks. Expectations of a rate cut by the Federal Reserve surge, institutions claim that the sector's cost-effectiveness is prominent.
Tech stocks on the Hong Kong Stock Exchange opened higher, with the Hang Seng TECH Index rising nearly 3% during the session. JD-SWR-SW rose 6.88%, Meituan-W rose 5.01%, BIDU-SWR-SW rose 4.66%, Alibaba-SW rose 4.27%, and Tencent rose 2.81%. Expectations of a rate cut by the Federal Reserve have surged, with institutions believing that domestic internet sector stocks offer attractive value for money.
Zhitong App learned that the technology stocks rose across the board in the morning session, with the Hang Seng Technology Index up nearly 3% during the session. As of the time of writing, JD.com-SW (09618) rose 6.88% to HKD 105.6; Meituan-W (03690) rose 5.01% to HKD 85.85; Baidu Group-SW (09888) rose 4.66% to HKD 112.2; Alibaba-SW (09988) rose 4.27% to HKD 72.05; Tencent (00700) rose 2.81% to HKD 315.
On the news front, at the interest rate meeting on December 14th, the Federal Reserve kept the federal funds rate in the range of 5.25% to 5.5%, but the forward guidance unexpectedly turned dovish, indicating that there will be more than expected rate cuts next year. The dot plot shows that the Federal Reserve expects to lower rates by 75 basis points in 2024; Goldman Sachs' latest forecast is that the Federal Reserve will cut rates three times by 25 basis points each in March, May, and June next year.
Guosen Securities stated that in early November, there was a yield curve inversion in US bonds, signaling the end of the rate hike cycle and an increase in investor risk appetite. From a fundamental perspective, the performance of major overseas companies represented by Apple/META/Google/Tesla fell slightly below expectations, reducing their attractiveness. The third-quarter reports of domestic internet companies have been released, and the growth of high-quality standards remains impressive. In a horizontal comparison, the cost-effectiveness of domestic internet stocks is highlighted.
