Related Insights
The Chief Executive (CE) John Lee announced his Policy Address yesterday to layout the support policies and blueprints for long-term development. For the property market, the transaction price threshold of residential property investment under the New Capital Investment Entrant Scheme is lowered from HKD50mn to HKD30mn. Additionally, the maximum amount of investment for the purchase of non-residential properties to be counted will increase to HKD15mn. These measures could aid the still-recovering residential and stressed commercial property markets. On the fiscal front, the government pledges to speed up the development of Northern Metropolis-related railway projects and relax administrative red tape on land usage. Total fiscal spending on infrastructure projects will be increased by HKD30bn in the next 2-3 years. Meanwhile, the temporary suspension of Lantau Tomorrow Development will allow the government to reallocate resources more efficiently. For medium-to-long-term development, the CE announced details on the development of a Gold Exchange Hub. The city is now targeted to build a reserve of 2,000 tonnes in three years, almost on par with Mainland China's 2,300 tonnes.
HKD rates showed little changes yesterday, with 10Y EFBN yields and IRS staying steady at 2.95% and 3.01% respectively. The Fed Fund Rate cut will instead pose a more apparent impact on rates. As the Fed will likely frontload the cuts in 2025, HIBORs should fall faster this year in tandem with SOFRs. One-month HIBOR should retreat and maintain an 80-100bps spread against its USD counterpart. The weakening USD is another source of concern. Should USD/HKD return to the strong end (7.75) on a more dovish Fed, the HKMA may in turn sell HKD again, putting downward pressure on HIBORs. Strategy-wise, we see receiving opportunities on front and short-end rates relative to the long-end. The spot rates of 3m-4Y HKD swaps remain higher than its 3m forward counterparts.
Topic
Explore more
E & S Macro StrategyGENERAL DISCLOSURE/ DISCLAIMER (For Macroeconomics, Currencies, Interest Rates & Digital Assets)
The information herein is published by DBS Bank Ltd and/or DBS Bank (Hong Kong) Limited (each and/or collectively, the “Company”). It is based on information obtained from sources believed to be reliable, but the Company does not make any representation or warranty, express or implied, as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions expressed are subject to change without notice. This research is prepared for general circulation. Any recommendation contained herein does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. The information herein is published for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. The Company, or any of its related companies or any individuals connected with the group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damages of any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication thereof, even if the Company or any other person has been advised of the possibility thereof. The information herein is not to be construed as an offer or a solicitation of an offer to buy or sell any securities, futures, options or other financial instruments or to provide any investment advice or services. The Company and its associates, their directors, officers and/or employees may have positions or other interests in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking or financial services for these companies. The information herein is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of or located in any locality, state, country, or other jurisdiction (including but not limited to citizens or residents of the United States of America) where such distribution, publication, availability or use would be contrary to law or regulation. The information is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction (including but not limited to the United States of America) where such an offer or solicitation would be contrary to law or regulation.
[#for Distribution in Singapore] This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) which is Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 65-6878-8888 for matters arising from, or in connection with the report.
DBS Bank Ltd., 12 Marina Boulevard, Marina Bay Financial Centre Tower 3, Singapore 018982. Tel: 65-6878-8888. Company Registration No. 196800306E.
DBS Bank Ltd., Hong Kong Branch, a company incorporated in Singapore with limited liability. 18th Floor, The Center, 99 Queen’s Road Central, Central, Hong Kong SAR.
DBS Bank (Hong Kong) Limited, a company incorporated in Hong Kong with limited liability. 11th Floor, The Center, 99 Queen’s Road Central, Central, Hong Kong SAR.
Virtual currencies are highly speculative digital "virtual commodities", and are not currencies. It is not a financial product approved by the Taiwan Financial Supervisory Commission, and the safeguards of the existing investor protection regime does not apply. The prices of virtual currencies may fluctuate greatly, and the investment risk is high. Before engaging in such transactions, the investor should carefully assess the risks, and seek its own independent advice.
Related Insights
Related Insights
DISCLAIMER