Shares of New World Development, a prominent Hong Kong property developer, soared by 6.67% on Monday, outperforming the broader market. The stock rally was fueled by expectations of a potential boost for the city's real estate sector, driven by an anticipated interest rate cut by the U.S. Federal Reserve.
Hong Kong's monetary policy closely follows the U.S. due to the city's currency peg to the U.S. dollar. With the Federal Reserve widely expected to cut interest rates this month, market participants are betting on increased buyer demand in the local property market.
Several major Hong Kong developers, including New World Development, CK Asset, Henderson Land, and Sun Hung Kai Properties, are reportedly planning to launch new housing projects in September, betting on heightened buyer interest after the anticipated rate cut. CK Asset's shares led gains among major Hong Kong builders on Monday, rising 5% to HK$32.35.
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