Morgan Stanley stated that the interest rate cut is a catalyst for equity market due to the overall decrease in social financing costs. The remaining quota as to 99% and 92% for Southbound and Northbound trade resulted in more liquidity into both stock markets.

The broker stated that the interest rate reduction will benefit real estate and insurance most in the short term. The impacts on some high leverage industries such as IPP should be positive in particular, but have mixed impacts on banks as the asymmetric rate cut will benefit the sector positively, whereas NIM will be negative.