Edward Yau: Short-term stock market fluctuations are inevitable, Hong Kong stocks will continue to move forward after the pullback

Recently, the Hong Kong stock market has been volatile. Hong Kong Financial Secretary Paul Chan Mo-po stated that since the central government announced multiple economic stimulus measures at the end of last month, the Hong Kong stock market has recorded significant gains. However, similar to past bull markets, there will be some fluctuations within the upward trend. He believes that the stock market will continue to develop after a correction, but attention should still be paid to the economic situation and fund flows. Paul Chan mentioned that the measures announced by the central government not only stabilize expectations for the mainland's economic development prospects but also send a clear signal in terms of liquidity. Market liquidity will be greatly enhanced, but it will take some time for these specific measures to be reflected in the real economy. Therefore, some short-term market fluctuations are inevitable. The financial market is influenced by many factors, including trends in external interest rates. He also stated that according to market consensus, after the Federal Reserve's rate cut in September, it is believed that the rate-cut cycle has begun. However, the speed and extent of rate cuts are influenced by various factors, including the local U.S. economy, geopolitical issues, the U.S. presidential election, etc. Authorities will closely monitor these factors and urge everyone to be cautious in managing risks when investing