TechFlow News — On September 22, Hong Kong's Financial Secretary Paul Chan Mo-po noted in his latest blog post that the U.S. Federal Reserve cut interest rates by 50 basis points last week—the first rate reduction in over four years. Several other major central banks around the world have also lowered rates recently, reinforcing market expectations of a gradual global decline in interest rates. Chan stated that a looser financial environment would benefit asset markets and the overall business climate. Under the Linked Exchange Rate system, Hong Kong’s interest rate movements are expected to broadly follow those of the United States, although the exact pace and extent of any cuts will depend on local fund flows and market conditions.
He emphasized that, amid this relatively favorable backdrop, Hong Kong should further intensify efforts to promote its local markets and diversify its sources of capital. Chan also mentioned that Saudi Arabia’s Capital Market Authority has recently approved the listing of the first ETF investing in Hong Kong stocks on the Saudi Stock Exchange, facilitating direct investment from the Middle East into Hong Kong equities. Chan plans to lead a delegation to the Middle East next month to foster deeper and broader exchanges and cooperation.
