The "Warrants Passion" - Among the major business categories, the ones currently showing the strongest ultra-short-term performance are utilities, healthcare, and property & construction. In the short term, healthcare is the strongest. In addition, among the 150 securities monitored by the author, those currently offering the highest ultra-short-term speculative value are WuXi Biologics (02269), China Merchants Port (00144), and ENN Energy (02688), which can be used as references when buying related call warrants or bull certificates for profit. In the short term, WuXi Biologics is the strongest. As for securities suitable as references when buying related put warrants or bear certificates for ultra-short-term profit, HSBC (00005), AIA Group (01299), and Standard Chartered (02888) should be the top choices. In the short term, HSBC is the weakest.
If the U.S. further raises interest rates by 25 basis points before the end of this year, it would theoretically exert some pressure on Hong Kong stocks. The linked exchange rate system would force Hong Kong banks to eventually follow suit with rate hikes, increasing corporate financing costs and mortgage interest rates, which would be relatively unfavorable for the valuation of listed companies in the property, rental income, utilities, and highly leveraged sectors. At the same time, this would also attract some funds to remain in U.S. dollar assets, reducing capital inflows. However, if the rate hike decision has already been fully priced in by the market, and the U.S. Federal Reserve simultaneously sends signals that it is nearing the end of the rate hike cycle or even that rate cuts may be possible in the future, Hong Kong stocks might instead experience a "sell the rumor, buy the fact" effect. On the other hand, Hong Kong stocks' valuations have been relatively low in recent years; if the mainland economy improves and corporate earnings rebound, attracting foreign capital to return, Hong Kong stocks would have the conditions to catch up even if the U.S. raises rates again, although their upside might be constrained by the global interest rate environment remaining relatively high. Chief Advisor, Economic Information & Trading Access, Leung Yip Ho, Benny (Website: www.BennyLeung.com)
*Articles published in "Economic Information" under named and/or anonymous authors represent the authors' personal opinions and do not reflect the stance of "Economic Information." "Economic Information" serves merely as a platform providing free speech.
If the U.S. further raises interest rates by 25 basis points before the end of this year, it would theoretically exert some pressure on Hong Kong stocks. The linked exchange rate system would force Hong Kong banks to eventually follow suit with rate hikes, increasing corporate financing costs and mortgage interest rates, which would be relatively unfavorable for the valuation of listed companies in the property, rental income, utilities, and highly leveraged sectors. At the same time, this would also attract some funds to remain in U.S. dollar assets, reducing capital inflows. However, if the rate hike decision has already been fully priced in by the market, and the U.S. Federal Reserve simultaneously sends signals that it is nearing the end of the rate hike cycle or even that rate cuts may be possible in the future, Hong Kong stocks might instead experience a "sell the rumor, buy the fact" effect. On the other hand, Hong Kong stocks' valuations have been relatively low in recent years; if the mainland economy improves and corporate earnings rebound, attracting foreign capital to return, Hong Kong stocks would have the conditions to catch up even if the U.S. raises rates again, although their upside might be constrained by the global interest rate environment remaining relatively high. Chief Advisor, Economic Information & Trading Access, Leung Yip Ho, Benny (Website: www.BennyLeung.com)
*Articles published in "Economic Information" under named and/or anonymous authors represent the authors' personal opinions and do not reflect the stance of "Economic Information." "Economic Information" serves merely as a platform providing free speech.
