ASIA FINANCIAL(HK:00662) Ge Long Hui·2025-09-25 02:09Core Viewpoint - Morgan Stanley maintains an "overweight" rating on Asian financial stocks, citing favorable local currency earnings and high dividend characteristics, alongside expectations that these stocks will continue to outperform the market due to a weakening US dollar as a result of Federal Reserve rate cuts [1] Group 1: Asian Financial Stocks Outlook - The normalization of interest rates in Japan, growth in other wealth and capital markets, and potential valuation reassessment of Chinese stocks are expected to support the outlook for Asian financial stocks [1] Group 2: Hong Kong Banks - Hong Kong banks are facing local headwinds, with pressure on interest rates and credit quality, leading to a preference for banks with a higher proportion of international business [1] - HSBC and Standard Chartered are maintained with an "overweight" rating, while Hang Seng Bank and Bank of China Hong Kong are rated "underweight" [1] Group 3: Chinese Banking Sector - Overall bank revenue and profit growth in China is expected to recover to an annual growth rate of 4% to 6%, with some mid-sized banks likely to return to double-digit profit growth [1] - Minsheng Bank is highlighted for its potential recovery in return on equity, supported by declining funding costs, lower credit costs, and a resumption of balance sheet growth, presenting further revaluation opportunities [1]