Hong Kong chart book - Near-term risks intensifying


A strong upturn in 1Q18 notwithstanding, near-term risks have intensified.
Samuel Tse03 Jul 2018
Photo credit: AFP Photo


• The faster-than-expected GDP growth was driven by the buoyant consumption.
• New administration will increase government expenditure to improve long term competitiveness.
• Decent investment growth momentum reflected positive business confidence.
• Moderate upward pressure on price will remain due to fed-through of high rent onto the CPI basket from last year.



Stock market consolidation will weigh on domestic consumption:



Overnight HIBOR jumped due to stock market consolidation; Long-term local interest rates will converge with LIBORs:



Property market remained red-hot:



To read the full report, click here to Download the PDF.

Samuel Tse

Economist - China & Hong Kong
samueltse@dbs.com
 

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