The P/E valuations of BOC HONG KONG (02388.HK)  -0.250 (-0.730%)    Short selling $54.86M; Ratio 8.842%   and HANG SENG BANK (00011.HK)  -0.400 (-0.337%)    Short selling $19.18M; Ratio 21.966%   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)  -0.050 (-0.053%)    Short selling $188.06M; Ratio 24.194%   | BUY | 103
STANCHART (02888.HK)  +0.200 (+0.154%)    Short selling $49.87M; Ratio 38.737%   | Neutral | 111
BOC HONG KONG (02388.HK)  -0.250 (-0.730%)    Short selling $54.86M; Ratio 8.842%   | Neutral | 31.1→35.1
HANG SENG BANK (00011.HK)  -0.400 (-0.337%)    Short selling $19.18M; Ratio 21.966%   | Neutral | 104→114
BANK OF E ASIA (00023.HK)  -0.040 (-0.328%)    Short selling $194.11K; Ratio 2.978%   | Sell | 9.5 → 10.5
DAHSING BANKING (02356.HK)  +0.010 (+0.105%)    Short selling $581.99K; Ratio 3.353%   | Neutral | 7.4→8.2
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-04 16:25.)

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