Hong Kong Financial Secretary Paul Chan Mo-po released his diary, which pointed out that the Federal Reserve cut interest rates by 50 basis points last week, the first time in more than four years. In addition, many major central banks around the world also cut interest rates earlier, which strengthened the financial market's expectation that global interest rates will gradually fall. The loose financial environment is also beneficial to the asset market atmosphere and the business environment of industry and commerce. Although under the linked exchange rate system, it can be expected that the future trend of Hong Kong's interest rates will be roughly the same as that of the US interest rate, the speed and extent of the reduction will depend on the local capital flow and market conditions.
Against the backdrop of the gradual turn of the overall environment to a relatively favorable one, it is even more necessary to further increase efforts to promote the Hong Kong market and open up broader and more diversified sources of funds for the Hong Kong market when investment risk appetite gradually recovers and investors pursue higher returns. Following the listing of the first exchange-traded fund (ETF) tracking Saudi Arabian stocks in the Asia-Pacific region in Hong Kong at the end of last year, the Saudi Capital Market Authority recently announced that it has approved the first ETF investing in Hong Kong stocks to be listed on the Saudi Stock Exchange, allowing local and even Middle Eastern funds to more conveniently invest directly in stocks listed in Hong Kong. Hong Kong will continue to strengthen its promotion and foster more cooperation in various traditional and emerging markets. We believe that as interest rates fall, we will be able to better leverage funds from different markets and inject new impetus into Hong Kong's capital market.