Last week, the Federal Reserve announced a 50 basis point rate cut, the first rate cut in more than four years. Coupled with the previous rate cuts by many major central banks around the world, the market's expectations for a gradual decline in global interest rates have been further strengthened. This loose monetary policy environment is not only conducive to the investment atmosphere in the financial market, but also helps to optimize the business environment of industry and commerce. Especially under the linked exchange rate system, Hong Kong's interest rate trend is expected to follow the pace of the United States. However, the speed and magnitude of the adjustment of Hong Kong's local interest rates will still depend on the specific capital flows in the market and the local economic situation.

Against the backdrop of the global environment gradually turning relatively favorable, the Hong Kong market needs to seize the opportunity to further enhance its global appeal. Especially as investors' risk appetite gradually recovers and they pursue higher returns, Hong Kong can inject new vitality into the local market by expanding broader and more diversified sources of funds. Since the first exchange-traded fund (ETF) tracking Saudi Arabian stocks in the Asia-Pacific region was listed in Hong Kong at the end of last year, the global attention to the Hong Kong market has continued to increase. Recently, the Saudi Capital Market Authority also announced the approval of the first ETF investing in Hong Kong stocks to be listed on the Saudi Stock Exchange. This means that funds from the Middle East, especially Saudi Arabia, can more conveniently invest in Hong Kong-listed stocks, further strengthening the linkage between the two capital markets.

Hong Kong will continue to increase its efforts in the future to promote in traditional and emerging markets and seek more cooperation opportunities. As global interest rates enter a downward cycle, Hong Kong is expected to further promote the development of the local capital market by leveraging funds from different markets around the world. This will not only help consolidate Hong Kong's position as an international financial center, but also provide investors with more diversified choices and more lucrative return potential. In this process, Hong Kong will continue to be committed to promoting innovation and diversification of the capital market to ensure its competitiveness and influence in the global financial landscape.