Confidence surges in stock market

Confidence in the stock market has surged by more than 40 per cent from last month following the recent reduction in interest rates, a survey has found.

The rate cuts also helped boost confidence in the property market by more than 20 per cent, according to the Hong Kong Policy Research Institute's monthly survey.

The Hong Kong Association of Banks announced a cut in interest rates from 7.5 per cent to seven per cent on Monday. It came after the US Federal Reserve announced a 50-basis-point cut in rates last week, the fourth this year.

The association has said more cuts may follow next month.

According to the poll, which surveyed 534 people aged between 18 and 64, confidence in the stock market has risen more than 42 per cent, from 64.2 points in April to 91.2 points in mid-May. The poll is based on a 200-point scale.

It also found that people were more confident in the property market, with a rise from 62 points last month to 76.4.

In addition, people were more optimistic about jobs, with a 15.2 per cent rise in the points score for those who believe unemployment will recede.

And there was a 15.1 per cent rise in confidence in the SAR's economy, from 65.6 points to 75.5 points.