Group 1 - UBS expects HIBOR to stabilize between 2% and 2.5% by the end of Q3 [1] - UBS maintains a cautious stance on Hong Kong commercial real estate risks due to potential increases in non-performing loans related to HIBOR rebound [1] - UBS has downgraded Hang Seng Bank's rating from "Neutral" to "Sell" due to rising credit costs and potential dividend cuts in 2025 [1] Group 2 - UBS anticipates that the compression pressure on net interest income for Hong Kong banks in Q3 will be greater than in Q2 [2] - The bank forecasts a decline in net interest income for Bank of China Hong Kong, Hang Seng Bank, and East Asia Bank by 7%, 9%, and 11% respectively in 2025 [2] - After a 2% growth in loan balances from May to June, the sustainability of this growth momentum remains uncertain [2]

Group 1 - The core viewpoint of the article is that Hong Kong's 1-month HIBOR has reached 2% for the first time since May, indicating a normalization trend in interest rates [1] - The average HIBOR from August to now is approximately 1.1%, with June and July averages at 0.7% and 1% respectively [1] - Goldman Sachs forecasts that the average HIBOR will rise to 1.3% and 1.6% in August and September, and to 1.3% and 2.3% in the third and fourth quarters, compared to 3.9% and 2% in the first and second quarters [1] Group 2 - The report suggests that the upward trend of HIBOR aligns with expectations, and the narrowing gap with US interest rates will lead to weaker net interest margins for local banks in the second half of the year [1] - Despite the decline in HIBOR since May affecting banks' net interest margins, Hong Kong bank stocks have shown resilience as the market has absorbed the positive factors of lower HIBOR, including increased fee income, reduced credit costs, and a recovery in loan demand [1] - Goldman Sachs maintains a selective strategy, giving a "Buy" rating to HSBC Holdings (00005) with a target price of HKD 110, while assigning a "Sell" rating to Bank of East Asia (00023) with a target price of HKD 10.5 [1]

Group 1 - The core viewpoint of the report indicates that the Hong Kong 1-month HIBOR has reached 2% for the first time since May, with an average of approximately 1.1% from August to date, and averages of 0.7% and 1% in June and July respectively [1] - Goldman Sachs forecasts that the average HIBOR will reach 1.3% and 1.6% in August and September, with averages of 1.3% and 2.3% in the third and fourth quarters, compared to 3.9% and 2% in the first and second quarters [1] - Despite the downward trend in HIBOR since May affecting banks' net interest margins, Hong Kong bank stock prices remain resilient as the market appears to have absorbed the positive factors of lower HIBOR, including increased fee income, reduced credit costs, and a recovery in loan demand [1] Group 2 - Goldman Sachs maintains a selective strategy, assigning a "Buy" rating to HSBC Holdings with a target price of HKD 110, while giving a "Sell" rating to Bank of East Asia with a target price of HKD 10.5 [1]

Group 1 - East Asia Bank announced a system maintenance scheduled for August 23, 2025, from 01:00 to 03:00 Beijing time [1] - During the maintenance period, all debit and credit card transactions, including consumption and cash withdrawal, may be affected [1] - The bank expressed apologies for any inconvenience caused and encouraged customers to make necessary arrangements in advance [1]

Core Viewpoint - Foreign banks in China are rapidly adjusting their retail business strategies, focusing on high-end retail and cross-border wealth management as new growth engines while closing numerous traditional branches [3][4][8]. Group 1: Structural Adjustments - Over 10 foreign banks have closed branches in mainland China since the beginning of 2025, indicating a trend of reducing physical network presence [4][5]. - HSBC and Standard Chartered have opened flagship branches and private wealth management centers in major cities, emphasizing high-net-worth clients and wealth management as primary business directions [5][6]. - The shift from standard branches to flagship outlets highlights a focus on privacy, professionalism, and brand representation, which are crucial for building competitive advantages in the Chinese market [5][6]. Group 2: Market Opportunities - The wealth management market in China is experiencing structural growth, driven by the expansion of the middle-income group and increasing demand for diversified financial services [8][9]. - The total scale of entrusted assets in various financial products reached 154 trillion yuan by 2024, with an annual growth rate of approximately 10.4% [8]. - Foreign banks are capitalizing on the growing demand for comprehensive wealth management services, including family trusts and global asset allocation [8][9]. Group 3: Competitive Landscape - Despite the potential in the wealth management market, foreign banks face significant competition from domestic banks, which have extensive networks and customer bases [11][12]. - As of the end of 2023, there were only 888 operational foreign bank branches in China, limiting their brand recognition and market coverage [11]. - Some foreign banks, like Dah Sing Bank and Citibank, have divested their personal banking operations, focusing instead on corporate and cross-border services [11][12]. Group 4: Future Outlook - The future growth of foreign banks in China’s wealth management sector is expected to be characterized by differentiation and specialization, focusing on high-end and cross-border services [12]. - Digital transformation is a priority, with foreign banks leveraging technology to enhance service efficiency and compensate for the reduction in physical branches [12]. - The ongoing structural changes in the Chinese financial market are prompting foreign banks to adapt by concentrating on their strengths and transitioning from broad coverage to deep specialization [12].

Core Insights - Foreign banks in China are rapidly adjusting their retail business strategies, closing over 10 branches while opening flagship branches and wealth management centers in major cities [1][2][4] - The shift towards high-end retail and cross-border wealth management is seen as a new growth engine for foreign banks amid increasing competition in the local market [1][4] Group 1: Branch Adjustments - More than 10 foreign banks have closed branches in mainland China since the beginning of the year, indicating a trend of continuous network contraction [2] - HSBC China has closed 9 branches this year, with over half located in Guangdong province, while Standard Chartered has also reduced its traditional physical branch scale [2][5] - In contrast, foreign banks are accelerating the establishment of flagship branches and private wealth management centers in core cities, focusing on high-net-worth clients [2][3] Group 2: Wealth Management Focus - Standard Chartered plans to invest $1.5 billion over the next five years to expand its wealth management services, targeting affluent clients' needs for diversified investments and wealth inheritance [3][5] - The wealth management market in China is experiencing structural growth, driven by the expansion of the middle-income group and increasing demand for wealth management services [4][5] - As of mid-2024, foreign banks in China had total assets of 3.87 trillion yuan, with a net profit of 14.9 billion yuan, reflecting a 28.4% year-on-year increase, largely driven by wealth management contributions [5] Group 3: Competitive Landscape - Despite the potential of the wealth management market, foreign banks face significant competition from local banks, which dominate basic services like savings and wealth management due to their extensive networks and customer bases [7] - As of the end of 2023, there were only 888 operating foreign banks in China, leading to limited brand recognition and coverage [7] - Some foreign banks have opted to shrink their personal business layouts, with examples including the transfer of personal business by Dah Sing Bank and Citibank's sale of its personal wealth management business to HSBC [7] Group 4: Future Outlook - The wealth management business of foreign banks in China is expected to continue growing, with a focus on differentiation and specialization [8] - Foreign banks will deepen their high-end and cross-border services, leveraging global networks to meet the complex needs of high-net-worth clients [8] - Digital transformation will be accelerated to enhance service efficiency and compensate for the limitations of physical branch networks [8]

香港银行股午后走高，截至发稿，渣打集团(02888)涨4.09%，报4.09%，报147.7港元；东亚银行(00023) 涨2.32%，报12.78港元；汇丰控股(00005)涨1.96%，报98.9港元；恒生银行(00011)涨1.77%，报115.1港 元。 消息面上，汇丰、恒生、渣打近日发布上半年业绩。华泰证券指出，渣打、汇丰扣非后业绩均超市场预 期，其中上半年非息收入表现亮眼，为营收增长提供主要支撑。但香港银行整体风险仍存，一方面 HIBOR持续低位导致息差下行，对二季度净利息收入造成拖累；另一方面香港信贷需求仍然疲软，渣 打、汇丰二季度本地贷款均环比收缩，此外香港商业地产不良率环比提升，地产行业压力持续。 此外，8月6日，因港元汇率触及7.85港元兑1美元的"弱方兑换保证"，香港金管局买入84.39亿港元，沽 出美元。银行体系总结余将于8月8日降至640.62亿港元。据悉，这已经是香港金管局在7天内的第4次干 预。香港金管局还表示，未来若"弱方兑换保证"再被触发，香港金管局将继续按机制买入港元，银行总 结余下降将逐步推高拆息。 本文源自：智通财经网 ...

Core Viewpoint - Hong Kong bank stocks have risen in the afternoon trading session, with Standard Chartered, HSBC, and Hang Seng Bank reporting better-than-expected half-year results, driven by strong non-interest income, despite ongoing risks in the banking sector [1] Group 1: Stock Performance - Standard Chartered Group (02888) increased by 4.09%, trading at 147.7 HKD - East Asia Bank (00023) rose by 2.32%, trading at 12.78 HKD - HSBC Holdings (00005) gained 1.96%, trading at 98.9 HKD - Hang Seng Bank (00011) increased by 1.77%, trading at 115.1 HKD [1] Group 2: Financial Performance - HSBC and Standard Chartered reported better-than-expected results after excluding non-recurring items, with strong non-interest income supporting revenue growth [1] - However, the overall risk in the Hong Kong banking sector remains, with low HIBOR leading to a decline in interest margins, negatively impacting net interest income in Q2 [1] Group 3: Credit Demand and Real Estate - Hong Kong's credit demand remains weak, with both Standard Chartered and HSBC experiencing a quarter-on-quarter contraction in local loans for Q2 [1] - The non-performing loan ratio in Hong Kong's commercial real estate sector has increased quarter-on-quarter, indicating ongoing pressure in the real estate industry [1] Group 4: Currency Intervention - On August 6, the Hong Kong Monetary Authority (HKMA) intervened by buying 8.439 billion HKD due to the Hong Kong dollar reaching the weak end of its peg against the US dollar [1] - The bank's total reserves are expected to decrease to 64.062 billion HKD on August 8, marking the fourth intervention by the HKMA in seven days [1] - The HKMA indicated that further interventions will occur if the weak end of the peg is triggered again, which may gradually increase interbank rates as total reserves decline [1]

Group 1 - Hong Kong bank stocks rose in the afternoon, with Standard Chartered Group up 4.09% to HKD 147.7, East Asia Bank up 2.32% to HKD 12.78, HSBC Holdings up 1.96% to HKD 98.9, and Hang Seng Bank up 1.77% to HKD 115.1 [1] - HSBC and Hang Seng reported better-than-expected first-half results, with Standard Chartered and HSBC's non-interest income showing strong performance, supporting revenue growth [1] - However, overall risks in the Hong Kong banking sector remain, with low HIBOR leading to a decline in interest margins, negatively impacting net interest income in Q2 [1] Group 2 - Local loan demand in Hong Kong remains weak, with both Standard Chartered and HSBC experiencing a quarter-on-quarter contraction in local loans in Q2 [1] - The non-performing loan ratio in Hong Kong's commercial real estate sector has increased quarter-on-quarter, indicating ongoing pressure in the real estate industry [1] - On August 6, the Hong Kong Monetary Authority intervened by buying HKD 8.439 billion due to the HKD/USD exchange rate touching the weak end of the peg, marking the fourth intervention in seven days [1]

Group 1 - In July 2025, the number of existing property mortgages in Hong Kong decreased to 5,702, down 1,070 (15.8%) from June, while the number of new property mortgages increased to 804, up 240 (42.6%) from June, marking a 13-month high [1] - Compared to the same month last year, existing property mortgages decreased by 239 (4%) from 5,941 in July 2024, while new property mortgages increased by 246 (44.1%) from 558 in July 2024 [1] - For the first seven months of 2025, existing property mortgages totaled 34,587, an increase of 4,116 (13.5%) from 30,471 in the same period last year, while new property mortgages reached 3,993, up 1,782 (80.6%) from 2,211 in the previous year, marking a five-year high for the first seven months [1] Group 2 - In terms of market share for existing property mortgages, Bank of China Hong Kong leads with 29.1%, followed by HSBC at 21.3%, Hang Seng Bank at 12.6%, Standard Chartered at 6%, and Bank of East Asia at 4.9% [2] - For new property mortgages, HSBC regained the top position with a market share of 27%, while Bank of China Hong Kong fell to second with 26.4%, followed by Hang Seng Bank at 16.5%, Standard Chartered at 6.3%, and Bank of East Asia at 5.7% [2] - The market share of the four major banks for existing property mortgages dropped from 74.9% in the previous month to 69% in July 2025, indicating a potential shift in the competitive landscape as banks become more positive about mortgage business [2]