Investment Daily

Hang Seng Index increased prior to the release of Federal Reserve rate decision. Itincreased 76 points and closed at 28,127 points on Wednesday. HSCEI closed at11,173 points, rising 47 points. Turnover was $97 billion. There’s continual capitalinflow for traditional and new energy automobile industry, among which severalof them broke 52-week high. Furthermore, the local property sector closed mixed.

    After the FOMC meeting on Wednesday, the Fed announced that, for the first timein nine years, it would start reducing the size of its $4.5 trillion asset portfoliocommencing in October. Besides, the Fed also signaled a December rate increaseis likely. US stock market fluctuated on Wednesday, and finished mixed. TheDow rose 42 points (to 22,413), continued to hit new high. On the other hand,Nasdaq fell 5 points(to 6,456).

    The Fed announced to shrink balance sheet in Oct and signal to further rate hikeonce in Dec. US dollar index as well as US bond yield rise, which is not favor toHK stock market. We expect Hang Seng Index to continue hover around 28,000today.