HK Stock Market Move | COSCO SHIPPING Development (02866) now falls more than 4% as the market anticipates a decrease in interest rates by the Federal Reserve. The company has nearly $7 billion in floating rate US dollar loans.

COSCO SHIPPING Development (02866) is now down more than 4%, as of the time of writing, it is down 4% at 1.2 Hong Kong dollars, with a turnover of 136.848 million Hong Kong dollars. On the news front, recent October US CPI and employment data have not been released due to the government shutdown, and due to a lack of actual surveys, they "may never be released." Meanwhile, several Federal Reserve officials have made hawkish statements, indicating uncertainty about whether interest rates should be lowered. As a result, market expectations for a rate cut have significantly cooled, with the probability of a rate cut at the December monetary policy meeting falling again, now standing at 42.9%, down nearly 50 percentage points from mid-October. Tianfeng released a research report stating that as of June 30, COSCO SHIPPING Development's RMB fixed-rate loans were 5.1 billion yuan, USD fixed-rate loans were 1.4 billion US dollars (equivalent to 10.1 billion yuan), floating-rate RMB loans were 10.4 billion yuan, and floating-rate USD loans were 6.9 billion US dollars (equivalent to 49.7 billion yuan). It is believed that if the Federal Reserve cuts interest rates, the interest expenses on floating-rate USD loans are expected to decrease directly. With a 1% decrease in the USD interest rate, interest expenses are expected to decrease by nearly 500 million yuan, which will have a significant impact on overall profits.