Hong Kong's three major stock indexes closed lower on September 17, with the Hang Seng Index falling 0.44% to 24,604.29 points. The Hang Seng Tech Index dropped 0.34%, while the Hang Seng China Enterprises Index declined 0.38%. Sector-wise, internet and tech stocks saw more losses than gains, with Meituan and Bilibili both falling over 2%, while Tencent and Alibaba slipped more than 1%. Lenovo bucked the trend with a gain of over 1%.

Auto stocks were notably active against the broader market weakness, with GAC Group surging more than 7%. On September 14, GAC Group announced it had signed a letter of intent with China FAW Group to optimize and integrate industrial resources between local state-owned enterprises and central state-owned enterprises, aiming to enhance the operating efficiency of listed companies. The plan involves purchasing a portion of equity in a joint venture vehicle company held by FAW through a share issuance, along with raising matching funds. Preliminary calculations suggest that upon completion of the transaction, FAW would become GAC's second-largest shareholder with strategic influence.

Gold stocks also took a hit, with Everest Gold declining by more than 7%. This came as the U.S. Federal Reserve announced a 25-basis-point rate hike, raising the federal funds rate target range to 3.75%-4.00%. This marked the first rate increase since July 2023 and aligned with market expectations. However, the dot plot and comments from Federal Reserve Governor Waller signaled a hawkish stance, suggesting the tightening cycle is far from over. The latest dot plot projections show the median federal funds rate forecast for the end of 2026 rising to 4.1% from 3.8% in June, with 16 officials expecting at least one more rate hike within the year. Waller noted that U.S. inflation remains elevated, adding that there is little information suggesting the inflation trend is passing its test.

Oil stocks weakened as well, with PetroChina falling over 2%. In the early hours of September 17 Beijing time, the Fed raised rates by 25 basis points to 3.75%-4.00%, the first hike since July 2023. The dot plot indicated that 12 of 18 officials expect one more rate increase this year, with Waller's hawkish remarks adding pressure. The rate hike boosted the U.S. dollar, making dollar-denominated crude oil more expensive for overseas buyers and further suppressing oil prices. In the short term, oil price movements will hinge on the actual progress of Saudi pipeline repairs and the resumption of navigation through the Strait of Hormuz. While institutions such as UBS believe that geopolitical risk premiums have not fully dissipated, futures markets have already shown more composure compared to spot markets, suggesting that the fervor in physical trading is unlikely to be sustained.