Hong Kong Stock Concept Tracking | The Federal Reserve may cut interest rates at this week's meeting, institutions are optimistic about the valuation reshaping of precious metals + rare earths (with concept stocks)

Ahead of an important meeting this week, U.S. President Donald Trump expects the Federal Reserve to "significantly cut interest rates."

The Federal Reserve is expected to take policy easing measures at this meeting for the first time in nine months. "I think there will be a significant reduction," Trump told reporters on his way back to Washington. "Now is the perfect time to cut rates." In the face of a slowing U.S. labor market, stubborn inflation, and unprecedented pressure from Trump for rate cuts, the Federal Reserve is widely expected to lower rates on September 17. The median forecast from economists surveyed by the media is a 25 basis point cut.

According to Zhitong Finance APP, Trump has been pressuring Federal Reserve Chairman Jerome Powell for months to lower interest rates and has repeatedly called for his resignation.

Galaxy Securities' research report states that overseas, while the U.S. August CPI data has rebounded, it generally meets market expectations, and inflation remains within a controllable range. At the same time, the labor market continues to cool, with initial jobless claims unexpectedly rising to 263,000 last week, the highest in nearly four years. This combination of signals further strengthens market expectations for the Federal Reserve to begin a rate-cutting cycle this year. The dollar is likely to weaken in the future, benefiting non-U.S. assets and driving capital flows into non-U.S. markets, especially emerging markets and high-yield assets, thereby enhancing global risk appetite.

Currently, market expectations for a potential 50 basis point rate cut by the Federal Reserve this year have increased, driving strong performance in Asian stock markets.

China Galaxy Securities released a research report stating that the rising expectations for Federal Reserve rate cuts are driving global capital to accelerate purchases of gold; coupled with the unclear independence of the Federal Reserve, this may trigger more risk-averse capital allocation to gold, pushing up gold prices, and it is recommended to pay attention to leading gold stocks.

In the context of escalating global trade disputes and geopolitical conflicts, the strategic value of scarce metals is increasing. Our country is strengthening export controls, and the rare earth industry is showing a clearer global monopoly pattern. The demand for rare earth magnetic materials is expected to increase in Q3 2025 due to overseas inventory replenishment needs, stimulating strong upward momentum in upstream rare earth prices, and magnetic materials may also see both volume and price increases. Galaxy Securities recommends paying attention to leading rare earth magnetic material stocks.

CITIC Securities' metals team continues to be optimistic about the allocation value of the strategic metals sector. The operational logic of the rare earth sector has not changed, with strong overseas inventory demand pushing the supply of praseodymium and neodymium oxide tight, providing strong support for rare earth prices.

Huaxi Securities' research report on September 7 indicates that the strategic metals sector may face a revaluation of value, recommending attention to rare earth magnetic materials, tungsten, and other key metals.

Gold-related industry chain Hong Kong stocks:

Zijin Mining (02899), Shandong Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), WanGuo Gold Group (03939), Laopu Gold (06181), etc.

Rare earth magnetic material-related Hong Kong stocks:

Jinli Permanent Magnet (06680)

Tungsten-related Hong Kong stocks:

Jiaxin International Resources (03858)