Core Viewpoint - UBS reports that Hong Kong has emerged from a cyclical downturn, supported by low interest rates and real exchange rates, indicating a positive outlook for the financial sector and real estate [1] Financial Sector - The rise in IPO activity and stock market trading volume reflects a resurgence in Hong Kong's financial industry, driven by its status as a leading global financial center [1] - Financial institutions, insurance, and banking sectors are expected to benefit directly from increased trading volumes and demand for asset and wealth management products [1] Economic Outlook - The onset of a new inflation cycle, coupled with a thriving financial sector, suggests that Hong Kong is entering a growth phase, which is favorable for the financial and real estate sectors [1] - The anticipated growth in the financial industry may improve office leasing demand due to increased activity [1] Market Projections - UBS sets a target for the MSCI Hong Kong Index (in USD) at 12,300 by the end of next year, reflecting optimism about the market's performance [1]