Shares of CK Asset Holdings Ltd. surged 5% on Monday, leading gains among major Hong Kong property developers, as the company prepares to launch a new residential project amid expectations of an impending interest rate cut by the U.S. Federal Reserve.
CK Asset plans to put 558 units on the market next month as part of its south side project, according to a report by the South China Morning Post. The company's move comes as Hong Kong developers are poised to launch at least six new projects with a total of 2,800 flats in September, betting on a more active local property market following the anticipated rate cut of at least 25 basis points.
Hong Kong's monetary policy moves in lock-step with the United States due to the Hong Kong dollar's peg to the U.S. dollar. As a result, any interest rate cut by the Federal Reserve would likely translate into lower borrowing costs in Hong Kong, potentially boosting housing demand and benefiting property developers like CK Asset.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.