Zhi Tong Cai Jing·2025-08-05 06:45Group 1 - The core viewpoint of the report indicates that HSBC Holdings' stock price fell by 5.1% after the announcement of its Q2 2025 earnings, underperforming the Hang Seng Index, which declined by 3.6%, despite the pre-tax profit excluding one-off items exceeding market expectations by 10% [1] - The market's disappointment is partly attributed to concerns over the unexpected $1 billion impairment at Bank of Communications [1] - The report raises HSBC's normalized earnings per share forecasts for 2025, 2026, and 2027 by 4%, 3%, and 3% respectively, and estimates a total shareholder return of 9.7% over the next 12 months, the highest among financial institutions in the Guangdong-Hong Kong-Macao Greater Bay Area [1] Group 2 - The report maintains a positive outlook on HSBC, highlighting that the bank still holds a capital threshold reduction balance of $14 billion, indicating limited impact on dividends, capital, and stock buybacks even if further impairments at the associated company reach $14 billion [1] - Management has provided guidance on its digital asset strategy, indicating that the bank is preparing for potential disruptions from the accelerated global expansion of digital assets [1] - HSBC's revenue performance has shown greater resilience than expected [1]