HK Stock Market Move | Hong Kong Stock Exchange (00388) is now up more than 5%. The Hong Kong IPO market may welcome more large new stocks. Haier Finance believes that the interest rate cut will have a positive impact on transaction volume.

The Hong Kong Stock Exchange (00388) is now up more than 5%, with an increase of 5.68% at the time of writing, reaching 238 Hong Kong dollars with a trading volume of 14.66 billion Hong Kong dollars. On the news front, on September 17th, Midea Group Co., Ltd officially listed on the main board of the Hong Kong Stock Exchange, raising over 31 billion Hong Kong dollars in this IPO, making it the largest fundraising IPO in Hong Kong since the listing of Kuaishou in 2021. Charles Li, CEO of HKEX Group, stated after attending the listing ceremony that large new listings are expected to follow, with Hong Kong's fundraising size reaching $20 billion since the beginning of this year, with around 100 listing applications currently pending, including those planning to raise $1 billion. In addition, the Federal Reserve announced a 50 basis point rate cut. Bank of America Securities previously released a research report estimating that the upcoming rate cut would have a positive impact on trading volume. The bank pointed out that the fundraising size of Hong Kong IPOs in the first eight months of this year was still sluggish, down 5% year-on-year to about 19.8 billion yuan. The report stated that the recent or upcoming large IPOs are all from mainland China. In most cases, the issuer is already listed on the A-share market, and the issuance of H-shares by the company may lead investors to switch from the A-share market to Hong Kong due to valuation differences and exchange rate considerations, contributing slightly to the trading volume of the Hong Kong market.