[ET Net News Agency, 30 October 2025] The US Federal Reserve cut rates by 25 basis points as expected, but expectations for a further cut in December have cooled, sending the US dollar higher while US equities posted mixed results. In Hong Kong, the market awaited the outcome of the Xi-Trump summit, which concluded after 1 hour and 40 minutes, with details of the negotiations still unknown. By midday, the Hang Seng Index stood at 26,488, up 142 points or 0.5%, with main board turnover reaching HKD 178.7 billion. The Hang Seng China Enterprises Index was at 9,425, up 49 points or 0.5%. The Hang Seng Tech Index was at 6,112, up 18 points or 0.3%.
"Mak Ka Ka: Powell's comments aimed at managing expectations, December rate cut still possible"
This morning, the Chinese and US presidents met in Busan, South Korea. The HSI opened higher and traded in a narrow range. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the market broadly expects the Xi-Trump summit to bring some easing of China-US tensions. The talks are likely to focus on postponing reciprocal tariffs, purchases of US agricultural products, China relaxing rare earth export restrictions, fentanyl, and the TikTok issue.
Meanwhile, the Fed's 25 basis point rate cut was in line with expectations, and it also announced the end of quantitative tightening starting December. However, Chair Powell said a December rate cut is not a given. Mak believes Powell's reluctance to commit to a December cut is mainly to recalibrate market expectations, and a rate cut next month remains possible. As for ending quantitative tightening, she expects this will improve market liquidity and support medium- to long-term fund flows into Hong Kong stocks.
In terms of the HSI's technical outlook, Mak expects short-term resistance at the 27,000 level.
"Caution on HSBC: local property risks and Madoff compensation, maintain neutral rating"
HSBC (00005) reported results on Tuesday (28th), with the share price extending its post-results rally for a second day, up a cumulative 6.3%. Q3 statutory pre-tax profit fell 14% year-on-year to about USD 7.3 billion, missing expectations, while revenue rose 5% to USD 17.8 billion, beating forecasts. The quarterly dividend was maintained at 10 US cents. The group raised its full-year net interest income guidance to USD 43 billion (previously c. USD 42 billion), and expects a return on tangible equity (RoTE) of around 15% this year. However, Q3 operating expenses rose to USD 10.1 billion, including a USD 1.1 billion provision for the Madoff case.
Mak said HSBC's overall results were solid, with strong growth in wealth management and net interest income, as well as improved rate risk hedging, all supporting the share price. However, looking to the medium to long term, investors should remain alert to local property market risks, compensation related to the Madoff case, and potential capital pressure from the privatisation of Hang Seng Bank. As such, she maintains a neutral rating on HSBC.
Nevertheless, Mak pointed out that HSBC's attractive dividend yield remains a draw, especially in the current rate-cutting cycle, which favours higher-yielding stocks and provides share price support. Defensive or conservative investors can continue to hold the stock. For those not currently invested, she recommends waiting for a pullback towards HKD 105 before buying, with the medium-term target to break above the previous high of HKD 112.2.
"Mak Ka Ka: Powell's comments aimed at managing expectations, December rate cut still possible"
This morning, the Chinese and US presidents met in Busan, South Korea. The HSI opened higher and traded in a narrow range. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the market broadly expects the Xi-Trump summit to bring some easing of China-US tensions. The talks are likely to focus on postponing reciprocal tariffs, purchases of US agricultural products, China relaxing rare earth export restrictions, fentanyl, and the TikTok issue.
Meanwhile, the Fed's 25 basis point rate cut was in line with expectations, and it also announced the end of quantitative tightening starting December. However, Chair Powell said a December rate cut is not a given. Mak believes Powell's reluctance to commit to a December cut is mainly to recalibrate market expectations, and a rate cut next month remains possible. As for ending quantitative tightening, she expects this will improve market liquidity and support medium- to long-term fund flows into Hong Kong stocks.
In terms of the HSI's technical outlook, Mak expects short-term resistance at the 27,000 level.
"Caution on HSBC: local property risks and Madoff compensation, maintain neutral rating"
HSBC (00005) reported results on Tuesday (28th), with the share price extending its post-results rally for a second day, up a cumulative 6.3%. Q3 statutory pre-tax profit fell 14% year-on-year to about USD 7.3 billion, missing expectations, while revenue rose 5% to USD 17.8 billion, beating forecasts. The quarterly dividend was maintained at 10 US cents. The group raised its full-year net interest income guidance to USD 43 billion (previously c. USD 42 billion), and expects a return on tangible equity (RoTE) of around 15% this year. However, Q3 operating expenses rose to USD 10.1 billion, including a USD 1.1 billion provision for the Madoff case.
Mak said HSBC's overall results were solid, with strong growth in wealth management and net interest income, as well as improved rate risk hedging, all supporting the share price. However, looking to the medium to long term, investors should remain alert to local property market risks, compensation related to the Madoff case, and potential capital pressure from the privatisation of Hang Seng Bank. As such, she maintains a neutral rating on HSBC.
Nevertheless, Mak pointed out that HSBC's attractive dividend yield remains a draw, especially in the current rate-cutting cycle, which favours higher-yielding stocks and provides share price support. Defensive or conservative investors can continue to hold the stock. For those not currently invested, she recommends waiting for a pullback towards HKD 105 before buying, with the medium-term target to break above the previous high of HKD 112.2.