HK Stock Market Move | ZHAOJIN MINING (01818) rose over 11%. The U.S. Treasury Department's expansion of long-term bond repurchases has boosted the precious metals market. The Federal Reserve's high interest rates are leading to a loosening of the cycle.

ZHAOJIN MINING (01818) rose over 11% in early trading, and as of the time of writing, it is up 11.26%, trading at HKD 26.48, with a transaction volume of HKD 347 million. In news, on August 19 local time, the U.S. Treasury Department announced that it will at least double the scale of liquidity support repurchase operations for long-term nominal coupon Treasury securities (with maturities of 10-20 years and 20-30 years). The maximum scale for each operation is currently set at USD 2 billion, and thereafter, the scale for each operation will be at least USD 4 billion. The U.S. Treasury also stated that this increase in the scale of repurchase operations reflects its desire to provide greater liquidity in the long-term nominal Treasury securities market. Huayuan Securities believes that in the medium term, the core trading logic of the market has shifted to a pricing chain of "moderate inflation decline + marginal weakening of employment data Fed maintaining high interest rate cycle loosening ongoing reduction of interest rate hike expectations within the year," with the overall market likely completing its bottoming process amid continued fluctuations. The latter part of the U.S. economic cycle is facing multiple constraints such as high interest rates, credit contraction, and slowed growth. In the future, whether the Fed lowers interest rates due to economic slowdown or is forced to maintain high rates for a longer time due to persistent inflation, gold possesses strong long-term allocation value.