Equity OutlookHong Kong equities have rebounded 27% YTD, with southbound inflows exceeding HKD900 billion, according to CEIC data. DBS Hong Kong believes the market may enter a consolidation phase in the near term, mainly due to a temporally tighter liquidity in the city, while investors also await signs of fundamental stabilisation in China. That said, the structural weakening in USD and foreign investors’ needs for diversification should continue to support fund flows into China and HK equities over the long term. Robust IPO activity is bringing more industry leaders to Hong Kong, improving the market structure and enhancing its global appeal. DBS Hong Kong is positive on technology and non-bank financials and see trading opportunity from China’s Anti-Involution initiative.FX Market OutlookThe DXY index is expected to mainly hover in the 97-99 range in the near term. In the long term, the USD may still face downside risks due to the high probability of the Federal Reserve gradually cutting interest rates, tariff policies potentially weakening the US labour market, and ongoing questioning of the Fed's independence. Should the DXY index drop, among non-dollar currencies, the EUR and the AUD may outperform. For the RMB, it has been strengthening thanks to a strong CNY fixing rate. However, it may be challenging for the USD-CNH to break below 7.00 given China’s still-sluggish economy. Regarding the HKD, the aggregate balance is likely to have bottomed out, as the incentive for carry trades diminishes, meaning the chance of USD/HKD touching 7.85 again is low. As for the HIBOR, it may rise in the short term, but the increase is expected to be limited, as seasonal HKD demand will eventually subside, HKD loan demand remains sluggish, and the Federal Reserve is expected to resume interest rate cuts in September.Belinda Hsieh, Head of Treasures Investment Product & Advisory, Consumer Banking Group & Wealth Management, DBS Hong Kong, said: “DBS Hong Kong is committed to providing our clients with innovative and accessible investment solutions that cater to their evolving needs. Our new online ELI and CLI services aim to deliver a seamless investment experience, enabling our clients to manage their investments and capitalise on market opportunities with greater flexibility and control. Investing just got easier with a tap or a swipe.”The DBS Online ELI service offers a wide selection of Equity Linked Investments linked to Hong Kong and US stocks, including single stock, or exchange-traded fund (ETF), or baskets of specific stocks ETFs. The key features include allowing clients to place orders beyond normal branch hours; flexible investment periods from 1 to 11 months with some ELIs having a callable feature; a knock-in feature (applicable to some ELIs) to soften negative market impacts; and the availability of denominations in 11 major currencies including HKD, RMB, USD, AUD and EUR. The service provides greater flexibility and diversification for clients to align with their risk appetite and investment objectives.The DBS Online CLI service empowers clients to capture forex market movements and earn potential higher interest returns. Clients can start investing with USD 10,000 or its equivalent, with flexible investment periods ranging from 1 week to 6 months. The online journey features top-traded currency pairs and interactive FX charts to spark new investment ideas. It is also available in 11 major currencies including HKD, USD, AUD, NZD and CAD.Both the DBS Online ELI and CLI services are now accessible through the DBS digibank HK app and DBS iBanking, allowing clients to trade beyond normal branch hours[1] and customise their investments with ease, and stay connected to markets anytime anywhere.[1] For ELIs linked to US stocks, online service hours will be available from Hong Kong Time (HKT) 9am till HKT 7pm on US trading days. For ELIs linked to HK stocks, online service hours will be from HKT 9am till HKT 3:45pm on HK trading days.
[END]
About DBSDBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 16 consecutive years from 2009 to 2024.DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by uplifting lives and livelihoods of those in need. It provides essential needs to the underprivileged, and fosters inclusion by equipping the underserved with financial and digital literacy skills. It also nurtures innovative social enterprises that create positive impact. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
