US rate increase should only have short-term impact on Hong Kong stocks: CICC

Rise in US interest rates could put pressure on Hong Kong stocks, but the impact is likely to be short-lived, investment bank says

Hong Kong stocks could face greater volatility from renewed US monetary tightening, but the impact should be short-lived unless the Federal Reserve embarks on a sustained rate-increase cycle, according to China International Capital Corporation (CICC).

“When fundamentals can outweigh [the impact of higher rates], it is not a major factor,” Liu said at a media briefing on Wednesday afternoon.