HSBC Securities: US rate cut benefits Asian stock markets, recommends increasing holdings in Chinese and Korean stocks
HSBC Securities stated that the expected interest rate cut in the United States will lower the company's cost of capital, which is beneficial to Asian stock markets. It is recommended to increase holdings of Chinese and South Korean stocks, and to be optimistic about the Indian stock market. Van Jinhua pointed out that Asian economies are still growing, with China remaining the engine of economic growth in Asia. It is expected that China's GDP will grow by 4.9% for the whole year. As for the real estate market, it is expected that mainland China will introduce more policies to stabilize the market
According to the information obtained by the Wise Finance APP, Raymond Lin, the head of strategy for Asia-Pacific at HSBC Securities, stated that the expected rate cut in the United States will lower the company's cost of capital, benefiting the entire Asian stock market. The growth momentum of China's internet industry and domestic construction-related companies is good at the moment. It is recommended to increase holdings of Chinese and South Korean stocks, and also optimistic about the Indian stock market.
Frederic Neumann, Chief Economist for Global Research at HSBC, and Co-Head of Asia-Pacific, predicts that the Federal Reserve will cut interest rates in September this year and three times next year. This means that by the end of next year, the interest rate in the United States will continue to be maintained at above 4.25%. He mentioned that at the Third Plenum, China showed signs of openness, hoping to attract more capital into China, which is a very positive signal for Hong Kong.
Neumann pointed out that Asian economies are still growing, performing better than expected. He raised this year's GDP growth forecast for Asia (excluding Japan) to 4.7%. Considering the weak global growth, Asian exports have performed quite well, providing growth momentum for most Asian economies. He also believes that China remains the engine of economic growth in Asia, maintaining a forecast of 4.9% GDP growth for China for the whole year.
Regarding real estate, Neumann stated that he has noticed a partial recovery in real estate sales in mainland China recently, as well as some rebound in contract sales. However, this does not mean that a major turning point is near. In the coming months, more supportive measures may be introduced, and it is expected that mainland China may introduce more policies in the future to help stabilize the real estate market