The US high interest rate policy is unsustainable and global funds are pouring into China and Hong Kong

The Hong Kong stock market performed strongly, and the Hang Seng Index rose sharply in recent days, showing the return of market confidence. This phenomenon is closely related to the background of the Sino-US financial war. As the US high-interest policy faces challenges, global funds began to flow to the China and Hong Kong markets, and the economies of China and Hong Kong took advantage of the situation to rise. This series of changes marks that the Sino-US financial game has entered a new stage.

On the eve of the 75th anniversary of the National Day, the Chinese central government launched a series of rescue measures, which directly prompted the Hong Kong stock market to rebound rapidly. The Hang Seng Index has risen for several days since then. Today (27th), it opened 522 points higher again, an increase of 2.62%, and returned to the 20,000-point mark. This is the first time since August last year that the Hang Seng Index has broken through this psychological level, showing that the market is full of confidence in the recovery of the Chinese economy. However, local governments at all levels still have a high debt ratio!

Today, the Hang Seng Index finally closed at 20,632 points, up 707 points, and the turnover exceeded 440 billion yuan, setting a historical high. This week, the Hang Seng Index rose by more than 2,300 points, an increase of 13%, the largest weekly increase since October 1998. It can be seen that with the strong policy support of the central government, the Hong Kong stock market has regained its vitality. I wonder if this is a flash in the pan?

Technology stocks led the market to rise, and funds flowed into the China and Hong Kong markets

The strong performance of technology stocks is one of the main driving forces of this market rebound. The stocks of technology giants such as Tencent, Alibaba and JD.com continued to rise, showing that the market is full of expectations for the future development of China's technology industry. In particular, Alibaba's stock price broke through 100 yuan, setting a new high in nearly a year and a half, showing the market's expectations for the interconnection and cooperation of its payment and logistics businesses.
Meituan's stock price rose by 8%, while JD.com's stock price also rose by 10%. The leading position of these companies in the digital economy has given the market confidence in their future profitability. At a time when the global economy is facing challenges, Chinese technology companies have become a safe haven in the eyes of investors with their own technological strength and growing market demand.
The stock price of the Hong Kong Stock Exchange also rose by 11%, showing that the capital market's confidence in China's prospects is gradually increasing. Other blue-chip stocks such as AIA and WuXi AppTec also performed well, further boosting the prosperity of the Hong Kong stock market.

The high interest rate policy in the United States is unsustainable, and global funds are pouring into China and Hong Kong

As the pressure of the high interest rate policy in the United States on the economy becomes increasingly apparent, the ability of the US government to maintain high interest rates is facing challenges.
Due to the rising borrowing costs caused by high interest rates, the fiscal pressure on the US government is increasing, and the market has begun to worry about the prospects for US economic growth.
At the same time, the Chinese and Hong Kong markets have become new targets for global funds. China continues to promote loose monetary policies and increase its support for the economy, making the Chinese and Hong Kong markets increasingly attractive. Especially in the context of the Sino-US financial war, investors have begun to withdraw funds from the US market and turn to China and Hong Kong, a market with growth potential.
Domestic real estate stocks have also benefited from this wave of capital inflows. Domestic real estate stocks such as Longfor, Kaisa, and Yuexiu have seen a sharp rise, showing the market's re-examination of China's real estate industry. As the Chinese government adjusts its policies on the real estate market, these companies are expected to play an important role in the future economic recovery.

Against the backdrop of increasing global economic uncertainty, China and Hong Kong are gradually becoming ideal investment destinations for global funds with policy support and market opportunities. As the US economy falls into a high-interest dilemma, more and more international funds are flowing into the China and Hong Kong markets, which not only provides important support for the economic development of the two places, but also accelerates their rise in the global financial landscape.

The global economy has entered a turning point, and the financial game between China and the United States is becoming increasingly fierce. In the case that the United States cannot continue its high-interest policy, global funds have begun to flow into the China and Hong Kong markets, which has provided unprecedented opportunities for the economic development of China and Hong Kong. In the future, with the further influx of funds, the China and Hong Kong markets are expected to occupy a more important position in the global financial system. Investors should pay close attention to this trend and seize the opportunity of the rise of the China and Hong Kong economies.