Tai Hui, Chief Market Strategist for Asia Pacific at JPMorgan Asset Management, predicted that the Fed may cut interest rates by another 25 bps in December, and he believed that not all policies of the new US administration will be fully implemented, so the pressure for rising inflation may be lower than market expectations. He forecasted that the rate cut next year could reach 1%, compared to the market estimate of 0.5%.

Seeing that stocks with Chinese characterized valuation performed positively along with high-yield, oil, state-owned enterprise, semiconductor, and tech stocks at an earlier time, Hui estimated that Chinese enterprises listed in Hong Kong may benefit in the next rally. His focus will be on sectors like new energy, electric vehicles, and semiconductors, while prioritizing industry leaders as these companies are better equipped to withstand market competition and have a greater ability to expand into overseas markets.

Related NewsSH, SZ Stock Exchanges Require Large Mutual Funds to Limit Shr Downsizing: Wire
Unless there are significant breakthrough policies introduced, Hui opined that the Hong Kong stock market will move sideways or consolidate in the short term as investors generally maintain a wait-and-see attitude.