Hong Kong Stocks Dip as Fed Signals Rate Slowdown

Hong Kong stocks fell on Thursday following the Fed's announcement of a potential slowdown in rate cuts. The CSI300 Index rose slightly, while the Hang Seng dropped 0.6%. Investors are wary due to uncertain rate cuts in 2025 and a weak RMB, affecting real estate and energy shares.

In a challenging trading session, Hong Kong shares tumbled on Thursday, as the Federal Reserve projected a more relaxed pace in reducing interest rates next year. While China's indices showed mixed results, the Hang Seng fell 0.6%.

The Hong Kong Monetary Authority mirrored the Fed by trimming its base rate, casting doubts on significant rate cuts in 2025, according to Value Partners' Chief Investment Officer Kelly Chung. Investors' low risk appetite, coupled with a weak Chinese yuan and declining bond yields, have subdued market sentiment.

Chinese real estate and energy sectors saw downturns, whereas tech shares offered a glimmer of optimism. Notably, Vanke and Sunac China Holdings experienced sharp declines amid debt and arbitration concerns, while CATL considered a major Hong Kong listing.

(With inputs from agencies.)