HSBC Global Investment Research published a report noting that the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have issued a circular requiring enhanced controls on account opening and ongoing due diligence for clients related to Mainland China. The circular was released shortly after the China Securities Regulatory Commission (CSRC) penalized three offshore brokerages on May 22, 2026. Among Hong Kong financials, the broker preferred BOC HONG KONG (02388.HK) -0.260 (-0.539%) Short selling $144.73M; Ratio 23.349% over HKEX (00388.HK) +10.200 (+2.549%) Short selling $316.74M; Ratio 16.714% and AIA (01299.HK) +0.100 (+0.122%) Short selling $918.32M; Ratio 22.848% . It expected banks to be less affected than capital market participants and insurers, as the latter two rely more heavily on cross-border client investment flows. For BOC HONG KONG, its capital return story, positioning in serving Chinese enterprises' overseas expansion, and demand linked to the growing internationalization of RMB usage, provide support.Related NewsJPM: Tougher Cross-border Regulation Poses Limited Earnings Risk to Banks and Insurers; Overweight Rating Reiterated on HSBC HOLDINGS, STANCHART, AIA, FWDHSBC Global Investment Research rated HKEX and BOC HONG KONG as Buy, with target prices of HKD528 and HKD53.2 respectively. It rated AIA as Hold, with a target price of HKD85. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-02 16:25.)
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