Core Insights - The U.S. Labor Department reported that the Consumer Price Index (CPI) rose by 2.9% year-on-year in August, while the core CPI increased by 3.1%, aligning with market expectations, which strengthens the market's bets on a potential interest rate cut by the Federal Reserve [1] Group 1: Market Implications - A potential interest rate cut could lead to a weaker U.S. dollar, which may drive capital back to emerging markets, benefiting the Hong Kong stock market that has a high proportion of foreign investment [1] - The technology sector, being liquidity-sensitive, is likely to be the first to benefit from expectations of monetary easing [1] Group 2: Sector Analysis - A shift towards a looser interest rate environment would help reduce financing costs for technology companies in Hong Kong, particularly in high R&D sectors like biotechnology and the internet, alleviating pressure on valuation discount rates and improving long-term profit expectations [1] - Additionally, a rate cut may stimulate a rise in global risk appetite, enhancing market sentiment for the technology growth sector [1] - Technology companies, known for their resilience and growth attributes, tend to exhibit stronger upside potential in a loose monetary environment [1] Group 3: Investment Vehicles - Relevant ETFs for the Hong Kong technology sector include the Hong Kong Stock Connect Technology ETF (159101) and the Hang Seng Internet ETF (513330) [1]