Zhi Tong Cai Jing·2025-11-11 07:33Core Viewpoint - In October, Hong Kong local bank stocks outperformed the Hang Seng Index by 18%, primarily driven by the privatization news of Hang Seng Bank [1] Group 1: Market Performance - Hong Kong local bank stocks showed strong performance, benefiting from the privatization news of Hang Seng Bank [1] - The overall banking sector fundamentals remain stable, with moderate loan growth and a continued rise in Hong Kong interbank offered rates, although the increase has narrowed [1] Group 2: Investment Preferences - The company believes that the downside risks for HSBC Holdings have largely been reflected in its stock price [1] - The privatization transaction is expected to enhance earnings per share and return on equity starting in 2027 [1] - The company prefers regional banks over local banks due to the more stable pre-provision operating profit of regional banks and lower real estate risks in Hong Kong and mainland China [1]