Zhi Tong Cai Jing·2025-08-07 06:41Core 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]