Market Insight | Hang Seng Index falls nearly 3%, with multiple constituent stocks dropping by over 4%. Federal Reserve officials mention the possibility of retaining interest rate hikes

According to the information from the Wise Finance APP, the Hang Seng Tech Index fell nearly 3% in the morning session, with several constituent stocks dropping by over 4%. As of the time of publication, Li Auto-W (02015) fell by 6.53% to HKD 107.3; XPeng Motors-W (09868) fell by 6.17% to HKD 27.35; BYD Electronics (00285) fell by 4.26% to HKD 23.6; Sunny Optical Technology (02382) fell by 3.73% to HKD 36.1; Alibaba-SW (09988) fell by 2.5% to HKD 66.2.

On the news front, on Thursday, John Williams, the President of the New York Fed and one of the "big three" at the Federal Reserve, once again expressed the view that "there is no rush to cut interest rates now," leading to a rise in U.S. bond yields and a decline in U.S. stocks. In addition, Raphael Bostic, President of the Atlanta Fed, stated that the possible timing for the first rate cut is "the end of this year," and said, "I am willing to be patient." Minneapolis Fed President Kashkari also expressed his desire to "be patient," suggesting that the first rate cut may not be appropriate until next year.

Previously, Zheshang International pointed out that in terms of liquidity, the U.S. CPI data exceeded market expectations again, and the further decline in rate cut expectations and the soaring U.S. bond yields have put further pressure on the liquidity environment in the Hong Kong stock market. Sinolink International stated that the last mile of U.S. inflation resistance is repeated, and the market's game with the Fed on interest rate cuts and balance sheet reduction will intensify market volatility