HK Stock Market Move | Inland property stocks strengthen again, the Fed's interest rate cut has a positive impact on domestic mortgage policies, and the probability of LPR interest rate cut within the year may increase.

The property stocks are once again strong. As of the time of writing, MIDEA REAL ESTATE (03990) rose by 8.62% to 3.15 Hong Kong dollars; ZHONGLIANG HOLDING (02772) rose by 6.67% to 0.08 Hong Kong dollars; CHINA JINMAO (00817) rose by 4.48% to 0.7 Hong Kong dollars; CHINA VANKE (02202) rose by 4.26% to 4.41 Hong Kong dollars; SUNAC (01918) rose by 4.04% to 1.03 Hong Kong dollars. In terms of news, the Federal Reserve recently cut policy rates by 50 basis points, leading to market expectations of a rate cut domestically. However, this morning, the LPR quotes for September were announced, with both the 1-year and 5-year rates remaining unchanged. Dongfang Jincheng believes that after a significant rate cut by the Fed, there is more flexibility in domestic monetary policy adjustments, and the probability of rate cuts and reserve requirement ratio cuts in the short term are increasing. Considering the current economic situation and price trends, the central bank may cut key policy rates in the fourth quarter, which will lead to a follow-up rate cut in LPR quotes. Yan Yuejin, Deputy Director of the Shanghai E-House Real Estate Research Institute, stated that the Fed's rate cut has a positive impact on China's loan policy, especially on mortgage policies. The probability and extent of LPR rate cuts from September to the end of the year will increase. Under loose loan policies, the short-term and long-term loan costs will further decrease. As a result, mortgage costs will also decrease, helping to lower housing costs and boost housing consumption. At the same time, it will guide further downward adjustments in existing housing loan rates.