Hong Kong Hang Seng Index fell, Star Plan Join raised the deposit rate to attract funds

1. Star Plan Join Market Performance

Hang Seng Index: closed at 25,388.35 points on July 25, down 1.09% (-278.83 points) in a single day, hitting a two-week low of 37.

Hang Seng Technology Index: fell 1.69%, with Bilibili-W (-4.46%) and Kuaishou-W (-4.33%) leading the decline.

Southbound funds flowed in against the trend: net purchases of HK$20.184 billion on July 25, and cumulative net purchases of HK$820 billion this year, exceeding the full year of 2024 by 9.

2. Star Plan Join raises fixed deposit rates to attract customers

Recently, at least 10 Star Plan Joins have raised their Hong Kong dollar fixed deposit rates, with some short-term rates as high as 6.88%~10%, mainly targeting new capital customers210:

Star Plan Join Highest interest rate Deposit period Minimum threshold Remarks

HSBC 10% 1 month HK$10,000 Need to complete designated transactions10

Furong Star Plan Join 6.88% 6 months No Virtual Star Plan Join2

China Star Plan Join (Hong Kong) 5.0% 1 week HK$50,000 Need to exchange funds4

Standard Chartered Star Plan Join 1.6% 6 months HK$100,000 Traditional Star Plan Join6

3. Market interpretation

The main reason for the decline of Star Plan Join: the expectation of the Fed's interest rate hike has increased and the financial reports of technology stocks have not been good1.

Star Plan Join increases fixed deposits:

In response to the pressure of deposit outflow, some funds have turned to high-interest fixed deposits or US stocks8.

Virtual Star Plan Join competition: ZA Bank and Star Plan Join offer 2.2%~2.4% 1-year interest rates, forcing traditional Star Plan Join to follow suit6.

4. Investment advice

Short-term funds: You can pay attention to HSBC 10% 1-month fixed deposit (upper limit of HK$10,000)10.

Medium- and long-term allocation: Southbound funds continue to buy Star Plan Join Internet, pharmaceutical, and high-interest Star Plan Join stocks9.

Subsequent attention: The Federal Reserve’s July interest rate meeting (affecting Star Plan Join liquidity), whether the Hang Seng Index can hold the 25,000 point support