The P/E valuations of BOC HONG KONG (02388.HK)  +1.100 (+3.179%)    Short selling $130.45M; Ratio 18.148%   and HANG SENG BANK (00011.HK)  +1.900 (+1.602%)    Short selling $55.23M; Ratio 23.255%   have been adjusted to their 20-year averages, while market expectations for EPS growth for FY25/ 26 have also dropped below mid-cycle growth, according to Goldman Sachs' research report.

In addition, Hong Kong's property market and loan business are expected to show a slow (around low single-digit) recovery. Along with the pressure on HIBOR, a driving factor for profitability, it poses downside risks to banks' net interest margins and balance sheets.

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As positive factors had already been absorbed by the market, Goldman Sachs saw no upside potential for the industry.

Stock | Investment Rating | Target Price (HKD)

HSBC HOLDINGS (00005.HK)  +1.000 (+1.050%)    Short selling $145.98M; Ratio 13.017%   | BUY | 103
STANCHART (02888.HK)  0.000 (0.000%)    Short selling $48.39M; Ratio 40.142%   | Neutral | 111
BOC HONG KONG (02388.HK)  +1.100 (+3.179%)    Short selling $130.45M; Ratio 18.148%   | Neutral | 31.1→35.1
HANG SENG BANK (00011.HK)  +1.900 (+1.602%)    Short selling $55.23M; Ratio 23.255%   | Neutral | 104→114
BANK OF E ASIA (00023.HK)  +0.040 (+0.325%)    Short selling $1.91M; Ratio 14.514%   | Sell | 9.5 → 10.5
DAHSING BANKING (02356.HK)  +0.060 (+0.630%)    Short selling $487.22K; Ratio 2.640%   | Neutral | 7.4→8.2
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-08 16:25.)

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