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.Related NewsG Sachs Adds HSBC HOLDINGS' TP to HKD109, Predicts 2Q25 Underlying Pre-Tax Profit to Sink 8% YoYAs 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 | 103STANCHART (02888.HK) 0.000 (0.000%) Short selling $48.39M; Ratio 40.142% | Neutral | 111BOC HONG KONG (02388.HK) +1.100 (+3.179%) Short selling $130.45M; Ratio 18.148% | Neutral | 31.1→35.1HANG SENG BANK (00011.HK) +1.900 (+1.602%) Short selling $55.23M; Ratio 23.255% | Neutral | 104→114BANK OF E ASIA (00023.HK) +0.040 (+0.325%) Short selling $1.91M; Ratio 14.514% | Sell | 9.5 → 10.5DAHSING 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.)Related NewsJPM Expects EMPEROR INT'L (00163.HK) $16.6B Loan Default to Have <3% Negative Impact on HK Banks' 2025 Earnings