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<Research>M Stanley Envisions HKT-SS/ PCCW/ SUNEVISION to Benefit from HIBOR Staying Below 3% for Longer Period
Due to a weaker USD and the currency peg limiting HKD appreciation, the one-month Hong Kong Interbank Offered Rate (HIBOR) dropped from 4% to 1.9% in just four days, with highly le...
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<Research>M Stanley Envisions HKT-SS/ PCCW/ SUNEVISION to Benefit from HIBOR Staying Below 3% for Longer Period
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Due to a weaker USD and the currency peg limiting HKD appreciation, the one-month Hong Kong Interbank Offered Rate (HIBOR) dropped from 4% to 1.9% in just four days, with highly leveraged stocks like HKT-SS (06823.HK)  +0.080 (+0.708%)    Short selling $1.56M; Ratio 4.420%   , PCCW (00008.HK)  -0.040 (-0.742%)    Short selling $781.70K; Ratio 4.377%   , and SUNEVISION (01686.HK)  -0.280 (-4.211%)    Short selling $5.99M; Ratio 23.581%   among the beneficiaries, according to Morgan Stanley's research report.

From Morgan Stanley's perspective, if HIBOR remains below 3% for a longer period (2-3 months), compared to the 3.5-4% seen at the beginning of this year, related companies could log significant growth in cash flow and profits.

For every 100 bp change in HIBOR, the broker estimated that HKT-SS/ PCCW/ SUNEVISION could save $178 million/ $220 million/ $135 million in annual interest expenses.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-13 12:25.)

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