Hong Kong Index Shares Decline Related To The Debt Ceiling?
We have to tackle this question
Because next month the Federal Reserve Bank
Chairman Of USA
Will make a decision on the current interest rate
which is around 5%
If the chairman increases the interest rate in June.
This could lead to more bank failures
and the value of shares
dropping in companies on the stock market
such as
HK50
who allegedly invest in US Bonds
When the stock market invests in
Bonds the Central Bank increases
Loan Rates to profit bondholders
These types of transactions are allegedly done
at the central bank
If the stock market companies do not invest in
government bonds
The government will not have the revenue to develop the
economy
Bonds are an investment for the local governments
Continue to read more about this debt ceiling situation
Because next month the Federal Reserve Bank
Chairman Of USA
Will make a decision on the current interest rate
which is around 5%
If the chairman increases the interest rate in June.
This could lead to more bank failures
and the value of shares
dropping in companies on the stock market
such as
HK50 who allegedly invest in US Bonds
When the stock market invests in
Bonds the Central Bank increases
Loan Rates to profit bondholders
These types of transactions are allegedly done
at the central bank
If the stock market companies do not invest in
government bonds
The government will not have the revenue to develop the
economy
Bonds are an investment for the local governments
Continue to read more about this debt ceiling situation
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.