Core Viewpoint - HSBC Holdings has been selected as a key asset in the "Global Vision" top ten core assets for 2026, representing the financial sector, due to its strategic transformation and focus on the Asia-Pacific market [1] Group 1: Strategic Transformation - HSBC has undergone a significant transformation over three years, divesting low-profit retail assets in Europe and the U.S. and refocusing on the Asia-Pacific market, emphasizing retail banking, cross-border trade, and wealth management [1] - The results of this transformation are evident in the first three quarters of 2025, with net interest income increasing by 4% year-on-year and a return on tangible equity (RoTE) of 18.2% [1] Group 2: Industry Opportunities - The global banking industry is entering a recovery phase in 2024, with the Asia-Pacific region becoming a core growth engine, contributing over 60% of the global cross-border trade growth of 8% [5] - The interest rate cut cycle is expected to benefit HSBC by reducing cross-border financing costs and stimulating demand for cross-border mergers and acquisitions, trade financing, and IPO activities in the Asia-Pacific region [5] Group 3: Business Segments Performance - HSBC's business structure has been reorganized into four main segments: Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth Management and Premier Banking (IWPB), enhancing operational efficiency [7] - The Hong Kong segment serves as a profit anchor, with a revenue increase of 5% to $11.8 billion in the first three quarters of 2025, driven by a 21% growth in non-resident clients since January 2023 [7] - The CIB segment is projected to benefit from a recovery in global capital markets, with revenue growth of 10%-12% driven by cross-border trade financing and investment banking activities [11] - The IWPB segment is expected to achieve revenue growth of 18%-20% due to the increasing wealth of high-net-worth individuals in the Asia-Pacific region [14] Group 4: Competitive Advantages - HSBC's core competitive advantage lies in its deep-rooted local network and cross-border service capabilities in the Asia-Pacific region, which have been built over 160 years [16] - The bank's strategic restructuring has enhanced its resilience to market cycles, with a focus on high-return businesses, resulting in 59% of revenue coming from CIB and IWPB [16] Group 5: Financial Improvement and Valuation - HSBC's financial health is improving, with a 4% year-on-year increase in net interest income and a stable RoTE above 18% [19] - The bank's current valuation is below historical averages, with potential for a 15%-20% recovery as the market recognizes its focus on high cash returns and Asia-Pacific growth [19]

Group 1 - The core viewpoint of the article highlights the mixed performance of major U.S. stock indices on the first trading day of 2026, with a notable surge in Chinese tech stocks and a significant increase in the Nasdaq Golden Dragon Index, which rose by 4.38%, marking its largest single-day gain since May 12 of the previous year [2][3][7] - Major technology stocks showed a mixed performance, with ASML and Micron Technology both achieving historical highs, rising over 9% and 10% respectively, while other tech giants like Tesla and Microsoft experienced declines of over 2% [3][5] - The semiconductor sector saw a strong rally, with the Philadelphia Semiconductor Index increasing by over 4.5%, driven by significant gains in companies like ASML and Micron Technology, which are benefiting from the growing demand for AI infrastructure [10][15] Group 2 - Tesla's Q4 delivery data fell short of expectations, resulting in a loss of its title as the world's top electric vehicle seller to BYD, which reported a 27.86% increase in annual electric vehicle sales [22][25][26] - Foreign investment institutions maintain a positive outlook on Chinese assets, with predictions of a 38% increase in the Chinese stock market by the end of 2027, emphasizing structured investment opportunities in technology innovation, green energy, and high-end manufacturing [28]

Group 1 - The Hang Seng Index (HSI) closed at 26,445.95, up by 107.48 points or 0.41% as of January 2, 16:00 Eastern Time [1] - The highest price during the trading session was 26,472.92, while the lowest was 26,180.87, with a trading volume of 58.0567 million [1] - The HSI has a 52-week high of 27,275.90 [1] Group 2 - Major blue-chip stocks showed mixed performance, with HSBC Holdings closing at HKD 125.368, up 0.86% from the Hong Kong close [2] - Tencent Holdings closed at HKD 627.621, reflecting a 0.74% increase from the Hong Kong close [2] Group 3 - Tencent Holdings (code: 00700) latest price is HKD 623.000, with an increase of HKD 24.000 or 4.01% [3] - Alibaba Group (code: 09988) latest price is HKD 149.000, up by HKD 6.200 or 4.34% [3] - HSBC Holdings (code: 00005) latest price is HKD 124.300, increasing by HKD 1.900 or 1.55% [3] - Other notable stocks include AIA Group (code: 01299) at HKD 83.300, up 4.26%, and Baidu Group (code: 09888) at HKD 143.800, up 9.35% [3]

Core Insights - The FTSE 100 index in the UK has surpassed the 10,000-point mark for the first time, achieving its best annual performance since 2009 [1] Group 1: Performance Highlights - Fresnillo and Endeavour Mining were the standout performers in the precious metals mining sector last year [1] - Financial institutions such as HSBC, Barclays, and National Westminster Bank contributed significantly to the index's point increase over the past 12 months [1] Group 2: Comparative Performance - The FTSE 100 index, primarily composed of export-oriented companies, surged by 22% in 2025, outperforming both the Stoxx Europe 600 index and the S&P 500 index [1]

Group 1 - HSBC Holdings (0005.HK) shares increased by 1.72% to HKD 124.50, reaching a historical high [1] - The stock has cumulatively risen by 70.57% since 2025 [1]

香港股份代號：5 2026年1月2日 HSBC Holdings plc 滙豐控股有限公司 董事會成員名單及角色與職務 鮑哲鈺 孫瑋 段小纓 范貝恩女爵士 傅偉思 古肇華 麥浩智博士（員工投入事務指定非執行董事） 莫佩娜 梅愛苓 張瑞蓮 滙豐控股有限公司董事會成員名單如下： 獨立非執行主席 聶智恆 高級獨立非執行董事 高安賢 執行董事 艾橋智（集團行政總裁） 郭珮瑛（集團財務總監） 獨立非執行董事 集團設有六個董事委員會，各董事在這些委員會所擔任的職位如下： 集團監察委員會 聶智恆（主席） 鮑哲鈺 段小纓 傅偉思 高安賢 集團薪酬委員會 范貝恩女爵士（主席） 段小纓 高安賢 HSBC Holdings plc 滙豐控股有限公司 註冊辦事處及集團總管理處： 8 Canada Square, London E14 5HQ, United Kingdom 網站：www.hsbc.com 英格蘭及威爾斯註冊有限公司。註冊編號 617987 董事會成員名單 / 2 麥浩智博士 莫佩娜 梅愛苓 集團風險管理委員會 傅偉思（主席） 孫瑋 范貝恩女爵士 古肇華 梅愛苓 聶智恆 張瑞蓮 提名及企業管治委員會 梅愛苓（主席） 古 ...

Core Insights - The top three companies by stockholding ratio in the Hong Kong Stock Connect are China Telecom (71.90%), GCL-Poly Energy (69.96%), and Da Zhong Public Utilities (68.75%) [1][2] - The companies with the largest increase in stockholding over the last five trading days include SMIC (+1.092 billion), China Merchants Bank (+1.052 billion), and Hong Kong Exchanges and Clearing (+790 million) [1][2] - The companies with the largest decrease in stockholding over the last five trading days include China Mobile (-3.216 billion), Tencent Holdings (-1.107 billion), and the Tracker Fund of Hong Kong (-465 million) [1][2] Stockholding Ratios - China Telecom (00728) holds 99.79 million shares with a stockholding ratio of 71.90% [2] - GCL-Poly Energy (01330) holds 28.3 million shares with a stockholding ratio of 69.96% [2] - Da Zhong Public Utilities (01635) holds 36.7 million shares with a stockholding ratio of 68.75% [2] - Other notable companies in the top 20 include China Shenhua (66.39%) and China Merchants Energy (64.43%) [2] Recent Trading Activity - The top three companies with increased holdings in the last five trading days are: - SMIC (00981): +1.092 billion, +15.28 million shares [2][3] - China Merchants Bank (03968): +1.052 billion, +19.92 million shares [2][3] - Hong Kong Exchanges and Clearing (00388): +790 million, +1.93 million shares [2][3] - The top three companies with decreased holdings in the last five trading days are: - China Mobile (00941): -3.216 billion, -39.36 million shares [2][3] - Tencent Holdings (00700): -1.107 billion, -1.84 million shares [2][3] - Tracker Fund of Hong Kong (02800): -465 million, -18.01 million shares [2][3]

Group 1 - The top three companies with the highest short-selling ratios are Cheung Kong (00001), CLP Holdings (00002), and Hong Kong and China Gas (00003), all reporting a short-selling ratio of 0.00% [1][2] - The top three companies by short-selling amount are also Cheung Kong (00001), CLP Holdings (00002), and Hong Kong and China Gas (00003), with amounts not specified [1][2] - The companies with the highest deviation values are Energy and Energy Global (01142), Hu Shang Ayi (02589), and China Shipbuilding Defense (00317), with deviation values of -0.41%, -0.41%, and -0.66% respectively [1][2] Group 2 - The top ten short-selling ratios include Cheung Kong (00001), CLP Holdings (00002), and Hong Kong and China Gas (00003), all at 0.00%, with significant negative deviation values [2] - The top ten short-selling amounts also feature Cheung Kong (00001), CLP Holdings (00002), and Hong Kong and China Gas (00003), all at 0.00% short-selling ratio and notable negative deviation values [2] - The top ten companies with the highest deviation values include Energy and Energy Global (01142), Hu Shang Ayi (02589), and China Shipbuilding Defense (00317), with deviation values indicating a decline compared to their average short-selling ratios over the past 30 days [2][3]

Core Viewpoint - HSBC forecasts that China will implement a 50 basis point reserve requirement ratio cut by 2026, supported by a series of easing policies and resilient exports, aiming for a 5% economic growth in 2025 [1] Economic Growth Outlook - Global economic growth is expected to remain stable in 2026, with a slowdown in trade export growth, while strong investments in artificial intelligence will support investment and trade growth in the next two years [1] - China is projected to achieve around 5% economic growth in 2025, aided by easing policies introduced since Q4 2024 and resilient export performance [1] Structural Transformation - The year 2026 marks the beginning of the "14th Five-Year Plan," where China will continue its structural transformation and maintain reasonable growth, with domestic demand, including consumption and investment, becoming the main driver of growth [1] Fiscal Policy - The Central Economic Work Conference has proposed maintaining a necessary fiscal deficit, with HSBC estimating the fiscal deficit rate target for 2026 to remain at a relatively high level of 4% [1] - The issuance scale of local government special bonds and special treasury bonds is expected to be similar to that of 2025 to support consumption and major project investments [1] Monetary Policy - There is potential for a further interest rate cut of 20 basis points in 2026, along with a possible reserve requirement ratio cut of 50 basis points [1]

Summary of the Conference Call Transcript Industry Overview - The banking sector is entering a phase of high-quality development, with a focus on absolute and relative returns from bank stocks, driven by high dividend yields and asset quality [3][4][20]. Key Points Financial Performance Projections - Expected revenue growth for listed banks in 2026 and 2027 is +2.5% and +3.6% respectively, with net profit growth of +1.9% and +2.6% [4][20]. - Revenue and profit growth are anticipated to improve due to: 1. Narrowing net interest margin pressure 2. Quality-focused credit issuance amid weak demand [4][20]. 3. Stabilization of fee income growth after several years of fee reductions [4][20]. 4. Stable or improving net non-performing loan generation rates [4][11]. 5. Accelerated supply-side reforms leading to a reduction in the number of bank licenses, improving competition and operational landscape [4][11]. Customer Demand and Market Dynamics - The low-interest-rate environment has shifted customer demand, with government and state-owned enterprises becoming significant contributors to leverage, affecting the structure of new social financing [5][10]. - Regulatory policies are influencing the development of inclusive finance, focusing on risk compensation rather than merely increasing customer numbers [5][10]. Risk Factors - Risks associated with real estate developers and retail sectors are highlighted, with potential for greater-than-expected exposure [6][11]. Profitability and Valuation Adjustments - Adjustments to profitability forecasts for 2025 and 2026 have been made, with a focus on net interest income recovery and fee income growth [20][21]. - The expected net interest margin for 2026 is projected to be approximately 1.34%, a decrease of 6 basis points from 2025 [21][22]. - Fee income is expected to grow by 3.6% and 4.9% in 2026 and 2027 respectively, indicating a positive trend in non-interest income [21][22]. Asset Quality and Credit Costs - The net non-performing loan generation rate is expected to stabilize or slightly decline, with structural characteristics of retail and corporate lending continuing [11][21]. - Credit costs are projected to remain stable at around 0.58% for 2026 and 2027, reflecting the balance between corporate and household debt servicing capabilities [21][22]. Investment Recommendations - The report suggests a continued positive outlook for bank stocks, emphasizing the importance of dividend yield and asset quality in investment decisions [3][4][20]. Additional Insights - The banking sector is undergoing a transformation towards high-quality development, with a shift in focus from scale to quality, driven by macroeconomic pressures and regulatory changes [12][20]. - The reduction in the number of banking licenses over the past five years indicates successful risk management efforts within the sector [11][12]. - The report emphasizes the need for banks to adapt their strategies to maintain competitiveness in a changing regulatory and economic environment [12][20].