Hong Kong Stock Exchange now down more than 4% as overseas liquidity uncertainty increases, UBS maintains "neutral" rating on Hong Kong Stock Exchange
1min read Hang Seng (00388) is now down over 4%, down 4.02% to HK$286.4 at the time of writing, with a turnover of HK$2.221 billion.
Shenwan Hongyuan pointed out that the Fed cut interest rates by 25bp as expected in November, and the Fed's pace of interest rate cuts may slow down after Trump's election. The brokerage said that the Fed's uncertainty in the pace of interest rate cuts in 2025 increased due to the divergence of US economic data and changes in subsequent policies. The focus of the catalyst for the Hong Kong stock market will return to the domestic economic outlook. The first recommended is Hong Kong Stock Exchange, which is sensitive to both earnings and interest rates.
UBS raised its EPS forecasts for Hang Seng by 1% for this year, 3% for next year and 3% for 2026 to Rmb10.36, Rmb9.83 and Rmb10.12 respectively, and raised the target price from HK$344 to HK$346 to "neutral" from "neutral".