JPMorgan: Hong Kong Bank Stocks Outperformed in October, Regional Banks Favored
Stock News
Nov 11
Hong Kong-listed bank stocks outperformed the Hang Seng Index by 18% in October, largely driven by news of HANG SENG BANK's (00011) potential privatization. However, the overall banking sector fundamentals remained stable, with moderate loan growth and a narrowing rise in Hong Kong interbank rates.
JPMorgan noted that while downside risks for HSBC HOLDINGS (00005) are largely priced in, and privatization deals could boost earnings per share and return on equity from 2027, the firm still prefers regional banks over local ones. This preference is based on regional banks' stronger pre-provision operating profits and lower exposure to Hong Kong/Mainland China property risks.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.