Hong Kong has benefited from its geographical proximity to Mainland China for a long time, but that's no longer the case for all sectors. Asset-related sectors continue to leverage this advantage a lot better than tourism and the re-export sectors
Fourth quarter GDP figures will be released tomorrow (28th March), and we are still looking for growth of the Hong Kong economy albeit slightly slower from the 3.6% year-on-year in the third quarter and the overall 3.8% in 2017.
Better growth could come from consumption and investment in private and public construction. However, we believe growth will continue to slow to 3.5% in 2018 and also in the future due to changes in the economic and financial relationship with Mainland China.
As well as being generally upbeat, Fed Chairman Powell's speech adds a few new elements to Fed thinking