The US Federal Reserve ended its last interest rate meeting this year, raised interest rates by a quarter of a percent as expected, and is expecting to raise interest rates 3 times next year, causing investors to worry that the pace of interest rate hikes will quickly go haywire! Hong Kong stocks dispersed, falling 440 points at 15:02. Public stocks, which Hong Kong investors have always loved, were unable to escape the fate of being sold when the US raised interest rates. CLP (00002-HK) fell slightly by 0.6%, China Gas (00003-HK) fell 1.2%, the electric energy industry (00006-HK) fell 1%, and HK Electric (02638-HK) fell 1.5%.

Credit Suisse published a report that after the US interest rate hike, interest rates on US bonds will continue to rise in 2017, and it is expected that Hong Kong public stocks will outperform the market. At the same time, rising interest rates will increase the financial costs of public stock companies, and it is estimated that every 25 basis points in the Federal Reserve's interest rate increase will reduce Hong Kong Electric (02638-HK) and CLP (00002-HK) earnings per share by 3% and 1.5% respectively next year.

Credit Suisse called for sales of CLP, HK Electric, and Gas (00003-HK), while the industry is most optimistic about electric energy (00006-HK). If there are no acquisitions, special interest will likely be distributed.

Yamato, on the other hand, suggests holding HK Electric, with a target price of $7.5.