20/05/2023
Outlook updates :
Although housing market surged to 7 % in first quarter of 2023, the property prices are expected to decline by 7 percent from the second quarter until the end of the year affected from hibor rate and banking crisis in US.
Unemployment rate is expected to come down under 3% due to the domestic economic activities revived further and visitor arrivals rebounded strongly
Insurance companies are expected to introduce numerous critical illness coverage for cancer, cardiovascular and neurological conditions and other illnesses according to personal needs and budgets as border had reopened .
With the tightening cycle of Fed likely coming to an end, developed market government bonds with longer duration may benefit and deliver a stronger performance, particularly in the U.S. market while global equities sector would be underweighted due to banking crisis , recessionary pressures ,tightening lending standards and inflation still looms .
Valuations in the Chinese and Hong Kong equity markets remain reasonable. Due to low base effects and fast economic recovery, earnings growth in 2023 is likely to be strong.
The potential linkage of digital wallets from e-CNY to e-HKD as a centralised bank digital currencies could be a game changer or early adopters in the region for payment and tokenised deposits .
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