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Fed Rate Hike Priced In, Hong Kong Stocks' Valuation Appeal Returns: Report
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According to data cited in the article, the Federal Reserve raised interest rates by 25 basis points in September 2026, pushing the 10-year US Treasury yield to 5.01% and the US dollar index to 100.22. US stock markets showed divergence, with the Nasdaq rising 0.72% driven by strong sales expectations for Nvidia and strength in tech hardware. Hong Kong's Hang Seng Tech Index gained 1.97%, with narrowing southbound capital inflows but slowing foreign outflows. Recent research reports cited in the article indicate that the rate hike marks a short-term clearing of liquidity headwinds, with the market having already priced in subsequent rate hike expectations. The reports suggest that the sustainability of the US stock rebound depends on AI industry catalysts and verification of third-quarter capital expenditure returns. Meanwhile, Hong Kong stocks have regained valuation appeal after a correction, and any marginal improvement in external liquidity would directly enhance their allocation attractiveness. The research recommends a value-and-dividend core portfolio, focusing on the AI supply chain and China's global scarce assets, particularly innovative drugs. Key policy events to watch include the September 30 revision of PCE compilation methodology and US-Iran negotiation developments during the UN General Assembly, which could act as catalysts for a shift in global risk appetite.
Source report
Date: September 21, 2026 14:42:38 Source: CFi.CN
Data shows that the Federal Reserve implemented a hawkish 25 basis point rate hike in September. The yield on the 10-year U.S. Treasury note rose to 5.01%, while the U.S. Dollar Index climbed to 100.22. U.S. stock markets showed divergence, with the Nasdaq rising 0.72% against the trend, driven by strong sales expectations for Nvidia and strength in the tech hardware sector. Hong Kong's Hang Seng Tech Index gained 1.97%, with southbound capital inflows narrowing but foreign capital outflows slowing.
Recent institutional research reports indicate that the conclusion of the rate hike marks a temporary clearing of short-term liquidity headwinds, with the market having already priced in expectations for further rate hikes. According to the reports, the sustainability of a U.S. stock rebound depends on catalysts from the AI industry and verification of capital expenditure returns in the third quarter. Meanwhile, after the recent pullback, Hong Kong stocks have regained their valuation advantage. If external liquidity conditions improve marginally, it would directly enhance their allocation appeal.
The reports suggest that investors should maintain value and dividend stocks as a core holding, while focusing on the AI supply chain and China's globally scarce assets—particularly innovative drugs. On the policy front, attention should be paid to the revision of the PCE compilation methodology on September 30 and developments in U.S.-Iran negotiations during the United Nations General Assembly. These factors could serve as key catalysts for a shift in global risk appetite.
Source: China Finance Network (中财网)
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中财网-外汇Eastern
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Fed 25bp Rate Hike Lifts US Yields to 5.01%; Nasdaq, Hang Seng Tech Rally