The Federal Reserve announced a 25 basis point rate cut, lowering the target range for the federal funds rate to 4.00%~4.25%. Fed Chair Powell stated that the current rate cut is a risk management decision and that there is no need to adjust rates rapidly.

This news has intensified volatility in global capital markets. As an offshore market, Hong Kong stocks are highly sensitive to changes in global capital flows. Loose monetary policy may directly enhance the liquidity of the Hong Kong stock market, attracting more incremental funds.

Xiangcai Securities believes that benefiting from the liquidity boost effect brought by the Fed's rate cut, the certainty of returns in the Hong Kong stock market has significantly increased. Technology and pharmaceutical stocks are more sensitive to interest rate changes, and the rate cut cycle is expected to further enhance their valuation flexibility.

On the morning of September 18, the Hang Seng Tech Index surged again, rising nearly 2% at one point during the session, leading the gains among key Hong Kong stock indices. Huahong Semiconductor, ASMPT, SMIC, Horizon Robotics, and others led the gains strongly, while Baidu, Meituan, Tongcheng Travel, and others followed suit.