Cathay Haitong Fang Yi: The easing window for liquidity in Hong Kong stocks has arrived

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Caitong Haitong’s chief strategy analyst, Fang Yi, released a report saying that from the second half of July to the mid-September period, Hong Kong equities will enter a phase where micro liquidity will be gradually eased. Regarding the reasons, Fang Yi said that on one hand, Hong Kong’s IPO calendar is temporarily in a slow season, lasting until the end of September; on the other hand, the peak of the July early-month de-restrictions period has passed, and Hong Kong equities will then see large-scale unlocks totaling more than HK$30 billion. At the same time, the likelihood of revisions to overseas rate-hike expectations is also rising. Since June, the volume of shipping through the Strait of Hormuz has improved notably, and oil prices have also fallen back from their highs, with expectations that the marginal impact of US inflation imported pressures will ease, creating room for revisions to rate-hike expectations over the next two months. However, Fang Yi said that overseas liquidity still has several risks that need to be watched: first, the US Dollar Index could strengthen beyond expectations; second, if the Hong Kong dollar reaches the weak-side guarantee level or triggers intervention by the Hong Kong Monetary Authority, liquidity could tighten; third, there are still uncertainties in the conflict between the US and Iran. (People’s Finance News)
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