Zheng Quan Ri Bao·2025-09-18 16:21Core Viewpoint - The Federal Reserve's decision to lower the federal funds rate by 25 basis points to a target range of 4.00% to 4.25% is expected to positively impact the valuation of Chinese assets, particularly benefiting Chinese concept stocks and the technology sector in Hong Kong in the short term [1][2]. Group 1: Impact on Chinese Assets - The recent interest rate cut is anticipated to lead to a rally in Chinese concept stocks and Hong Kong tech stocks, with the Nasdaq Golden Dragon China Index rising by 2.85% on September 17 [2]. - Companies like Xunlei and Baidu saw significant stock price increases, with gains exceeding 11%, while Alibaba reached a four-year high with a 2.44% increase [2]. - The depreciation of the US dollar against the Chinese yuan, from 7.3 to approximately 7.1 since 2025, is expected to enhance foreign investment in Chinese assets [2][4]. Group 2: Market Trends and Predictions - Historical trends indicate that after Fed rate cuts, growth sectors in A-shares and H-shares tend to outperform, aligning with the current performance of Chinese concept stocks and Hong Kong tech stocks [3]. - Analysts predict that the current rate cut is just the beginning of a new easing cycle, with expectations of further cuts in October and December, potentially lowering rates to between 3.0% and 3.25% by mid-2024 [5][6]. - The overall liquidity in the global market is expected to remain ample, benefiting risk assets, including A-shares and H-shares [6]. Group 3: Long-term Outlook - The resilience of Chinese assets during the Fed's rate-cutting period is attributed to their stable asset quality and the appeal of Chinese assets as safe investments amid global capital seeking higher returns [4]. - The ongoing economic transformation in China and improvements in economic visibility are expected to support the performance of Chinese equities in the long term [6]. - The potential for artificial intelligence to become a mid-term investment theme is highlighted, with foreign investors showing a positive attitude towards Chinese assets [6][7].