Changes in Hong Kong stocks | Zhaojin Mining (01818) rose more than 11%, the US Treasury expands long-term bond repurchases to boost the precious metals market, and the Federal Reserve's high interest rate maintenance cycle loosens

The Zhitong Finance App learned that Zhaojin Mining (01818) rose by more than 11% in early trading. As of press release, it had risen 11.26% to HK$26.48, with a turnover of HK$347 million.

According to the news, on August 19, local time, the US Treasury Department announced that it will at least double the scale of liquidity-supported repurchase operations for long-term nominal interest-bearing treasury bonds (10 to 20 years and 20 to 30 years). Currently, the maximum scale of each operation is 2 billion US dollars; thereafter, the scale of each operation will reach at least 4 billion US dollars. The US Treasury Department also said that this increase in the scale of repurchase operations reflects its desire to provide greater liquidity for the long-term nominal treasury bond sector.

Huayuan Securities believes that in the medium term, the core trading logic of the market has shifted to a pricing chain of “moderate decline in inflation+marginal weakening of employment data → the Fed's high interest rate maintenance cycle loosens → expectations of interest rate hikes continue to decline during the year”, and the overall market may gradually bottom out in the midst of continued turbulence. The latter part of the US economic cycle faces multiple constraints of high interest rates, credit contraction, and slowing growth. Whether the Fed cuts interest rates due to economic slowdown or inflation in the future. Due to stickiness and forced to maintain high interest rates for a longer period of time, gold has strong long-term allocation value.