THE Hong Kong share market sent out a dual message with its 7.5 per cent rise last week: first, that it believes the rise in US interest rates is over and, second, that the Government's property actions are not about to affect the market adversely.
On interest rates, the market is likely to be proved wrong in the not-too-distant future, but on the property market, it is probably right.
US Federal Reserve chairman Alan Greenspan has made it a practice this year to lift rates when the markets are calmer, when they are not betting heavily on a rise.This means rates will still probably rise before the year's end, but when Mr Greenspan is ready - not the markets.
On the Government's property moves, it now appears that their biggest impact was in the lead-up to the announcement of its plans.
Figures just out for June show a slowdown in sales, but this occurred when there was uncertainty about how tough the Government would be.
Now that the Government's plans for prices and land supply are on the table, the market has realised they are not that severe in the short term and some buoyancy is returning.
