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<Research>JPM: Impact of New Rules on HSBC HOLDINGS, STANCHART Controllable; Rating Overweight Reiterated
Recommend 10 Positive 19 Negative 11 |
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Since the announcement of the new rules on Offshore Direct Investment (ODI) on June 1, the share prices of HSBC HOLDINGS (00005.HK) and STANCHART (02888.HK) have cumulatively corrected by 8% and 10%, respectively, underperforming the HSI by 4 ppts and 6 ppts, JP Morgan said in its report. This may reflect investor concerns over growth prospects and existing Mainland Chinese Visitor (MCV) business following the new rules. However, during client meetings in Shanghai, Mainland investors expressed surprise at the pullback and maintained a more optimistic view on regulatory risks, believing the impact of the new rules should be controllable. The broker noted that in FY2025, Hong Kong wealth management contributed 7.6% and 6.6% of group revenue for HSBC HOLDINGS and STANCHART, respectively. Assuming 20-40% of Hong Kong wealth management revenue is derived from MCV, MCV would account for approximately 3-6% of group earnings for HSBC HOLDINGS and 4-8% for STANCHART. JP Morgan reiterated its Overweight rating on both HSBC HOLDINGS and STANCHART, maintaining TP at HKD182 and HKD275, respectively. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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