Angus Chan, Hong Kong strategist at UBS, commented that the launch of DeepSeek earlier this year has propelled technology stocks to boost the Hong Kong bourse. Although the trade war led to a faint shrinkage in the Hong Kong stocks, they have now recovered, and the number of IPOs has increased, shoring up overall profits of the local market, with fundamentals better than the macro economy. UBS upheld a cautiously optimistic view of Hong Kong bourse, setting a year-end target for the HSI at 24,500.

Regarding HIBOR, Chan noted that the decrease is boon to Hong Kong's overall economy, especially the stock market and real estate sector, foreseeing that funds from citizens' fixed deposits over the past few years will flow into other risk assets. However, he projected HIBOR will not remain at its current low level and will pick up to the 2-2.5% range. The lower HIBOR will also squeeze bank profits, mainly affecting Hong Kong banks rather than Chinese banks. UBS maintained a neutral view on the banking sector.