UBS: Hong Kong has emerged from its cyclical downturn, the thriving financial industry foreshadows a period of growth.

UBS released a research report stating that Hong Kong has emerged from a period of cyclical downturn, and cyclical factors such as low interest rates and real exchange rates will continue to provide support. In addition, the increase in IPO activity and stock market trading volume reflects that the Hong Kong financial industry has regained momentum and continues to be driven by Hong Kong's status as a leading global financial center. The bank believes that the advent of a new inflation cycle, coupled with the thriving financial industry, indicates that Hong Kong will enter a period of growth, which should be a positive signal for the financial and real estate sectors, i.e. tangible asset areas. The bank further pointed out that as Hong Kong's financial industry moves towards growth, financial institutions, insurance companies, and the banking sector will directly benefit from the increase in stock trading volume and the growth in demand for asset and wealth management products, which may also improve demand for office leasing. The thriving financial industry, coupled with low interest rates and a weak US dollar, may lead to a new inflation cycle. The bank's target for the MSCI Hong Kong Index (USD) by the end of next year is 12,300.