Group 1: HIBOR Overview - HIBOR is the benchmark interest rate for interbank borrowing of Hong Kong dollars, influencing costs for loans, corporate financing, and mortgages [2] - A decline in HIBOR indicates lower funding costs for banks, reducing interest burdens for businesses and individuals, thus enhancing liquidity in the economy [2] Group 2: Reasons for HIBOR Decline - The Hong Kong Monetary Authority (HKMA) manages the Hong Kong dollar's peg to the US dollar, intervening to maintain the exchange rate within a narrow band [4] - Increased demand for the Hong Kong dollar due to foreign capital inflows and southbound funds has led to a significant appreciation of the currency [4] - The HKMA's actions to maintain the peg involve buying US dollars and selling Hong Kong dollars, which increases liquidity and lowers HIBOR [6] Group 3: Impact of HIBOR on Hong Kong Tech Stocks - A lower HIBOR benefits the technology sector by reducing financing costs, facilitating research and development in high-risk areas like semiconductors and AI [7] - The valuation of tech stocks, which often have long-term cash flow structures, is more sensitive to interest rate changes, leading to potential increases in their valuations as HIBOR declines [7] - The Hang Seng Tech Index focuses on companies in the AI supply chain, with over 70% of its top ten constituents related to AI, indicating a strong alignment with the current market trends [7]