HONG KONG, Dec 17 (Reuters) - Hong Kong shares are expected to trade higher on Wednesday after the  U.S. Federal Reserve slashed interest rates pushing it towards zero in a move aimed at supporting the credit market and stimulating growth in the  world's largest economy. Hong Kong's monetary authority followed suit, owing to the peg between the U.S. dollar and the local currency, and lowered its base rate by 100 basis points to 0.50 percent. But it is uncertain whether local lenders, who have already said there is little room to cut rates further, will match the central bank's move. "HSBC seems to be playing hardball but sooner or later they will have to cut rates," said Francis Lun, general manager with Fulbright Securities. Lun expects the benchmark index to rally to 15,700 points on Wednesday as investors ignore the poor showing by Goldman Sachs

and weak housing and inflation data from the United States on Tuesday. The Hang Seng Index .HSI gained 0.6 percent on Tuesday to close at 15,130.21 as talk of imminent interest rate and tax cuts on the mainland drove up Chinese property counters.