|Bid||173.100 x 0|
|Ask||173.500 x 0|
|Day's Range||170.100 - 173.800|
|52 Week Range||156.000 - 212.600|
|Beta (5Y Monthly)||0.85|
|PE Ratio (TTM)||13.90|
|Earnings Date||Feb 17, 2020 - Feb 21, 2020|
|Forward Dividend & Yield||5.60 (3.29%)|
|Ex-Dividend Date||Oct 15, 2019|
|1y Target Est||192.08|
Moody's Investors Service has changed its rating outlook for HSBC Bank China from "stable" to "negative" after doing the same to its parent earlier in the week, as the bank faces a difficult operating environment amid civil unrest in Hong Kong and the US-China trade war.The change to negative means the ratings on HSBC units are unlikely to be upgraded, Moody's explained in a statement released on Thursday.However, it said there is no change to the A1 rating of HSBC China's long-term foreign and local currency issuers and deposit ratings. It said these enjoyed a "very high level of affiliate support from the parent in times of need, and are aligned with the parent's baseline credit assessment (BCA)."Therefore, any changes in the parent's ability to provide support to the bank, as reflected by a change in the parent's BCA, could negatively impact the bank."Moody's on Tuesday changed the rating outlook of the Hongkong and Shanghai Banking Corp, the wholly owned subsidiary of HSBC and the largest lender in Hong Kong, from "stable" to "negative". It did the same to its subsidiary Hang Seng Bank, which is also a large retail bank in Hong Kong.The rating agency, however, kept both banks' deposit ratings at Aa2/P-1 citing their sound asset quality and prudent risk management. But it changed their outlook to negative because of the challenging operating environment in Hong Kong and the rest of Asia, which contributes most of HSBC's profit. Protest chaos leads to widespread bank branch closures"Recurring protests in Hong Kong are undermining consumption and inbound tourism. Meanwhile, elevated trade tensions between the US and mainland China have led to increased economic uncertainty in the region," Moody's said in a statement. "Both developments will put pressure on the bank's asset quality and profitability, and weigh negatively on Moody's assessment of the bank's BCA."The change in Hang Seng Bank's outlook was also a result of the slowdown in economic growth in Hong Kong, and the expected impact on the bank's asset quality and profitability, Moody's added.Moody's said, however, that both HSBC and Hang Seng Bank's problem-loan ratios were low, at just 0.5 per cent and 0.2 per cent respectively in the first half of this year."Lending to the small-and-medium-sized enterprises in the retail, restaurant and hospitality sectors, which are most impacted by the protests, account for a relatively modest proportion of the two banks' overall lending in Hong Kong," Moody's added. More than half of both banks' lending is to the real estate sector, which carries low credit risks, it said.Both HSBC and Hang Seng Bank declined to comment on Moody's decision.Louis Tse Ming-kwong, managing director of VC Asset Management, disagreed with the move by the ratings agency."Moody's decision to change the outlook of HSBC and Hang Seng Bank is short-sighted," he said. "There are protests everywhere, while Hong Kong is not alone. The financial market and banking sector has held up well, and investors are still investing in the city for the long-term growth. The outlook of HSBC and Hang Seng Bank are positive for the longer term."This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
Banking stocks helped drag down Hong Kong's Hang Seng Index Wednesday after Morgan Stanley warned they are vulnerable to the city's economic slowdown and the rise of virtual banks.Hang Seng Bank " the second worst performer on the Hang Seng " closed down 3.3 per cent to HK$159.80. That was its biggest percentage fall in more than two months, following its 3.6 per cent decline on August 5.HSBC slid 0.56 per cent to HK$58.10 and Standard Chartered fell 0.9 per cent to HK$61.05. The three banks were dropped to underweight/cautious."In the past, the tourism and retail sectors as well as shopping malls took the brunt of the protests. Now investors seem to be worried about the state of the Hong Kong economy, and may be cautious towards the performance of the banking sector," said Stanley Chan, director of research at Emperor Securities. "The weakening interest rate environment also does not bode well for bank stocks."The Hang Seng finished the day down 0.8 per cent at 25,682.81.First virtual general insurance licence goes to Avo as Insurance Authority promotes insurtech in Hong KongThat contrasted with the mainland, where the Shanghai Composite Index closed up 0.39 per cent to 2,924.86, while the CSI 300 of leading stocks traded in Shanghai and Shenzhen gained 0.14 per cent to 3,843.24.But the stingy gains hinted at the caution investors feel, as trade negotiations set to begin on Washington's Thursday have already been talked down by both sides. In the run-up to the talks, the US blacklisted some of China's biggest surveillance camera makers, citing alleged abuses of Muslim minorities, sparking outrage by Beijing."The overall market sentiment in Hong Kong and China is still weak, and nobody knows if the situation could get worse. Most investors will continue to wait and see as it's not the right time yet,"said Gordon Tsui Luen-on, managing director of investment company Hantec Pacific. "Transaction volumes are still really low, and there isn't much desire to go against the market just yet."In China, 11 hit or nearly hit the 10 per cent upside limit, including Sino-Agri Leading Biosciences, a fertiliser and pesticide maker, Sobute New Materials, a concrete products maker, and GuangDong GenSho Logistics, which transports and warehouses automotive parts.US-China trade war may have 'milder than feared' effect on global growth, Fidelity saysSeveral Chinese stocks popular with northbound traders saw losses.Liquor giant Kweichow Moutai fell 1.7 per cent to 1,146.81 yuan. Gree Electric, China's biggest maker of air conditioners, dropped 1.9 per cent to 57.02 yuan. And Pig breeder New Hope Liuhe " up nearly 200 per cent over the past 12 months " fell 0.2 per cent to 17.96 yuan.In Hong Kong, index heavyweight Tencent slid on the heels of its decision to suspend broadcasts of NBA basketball preseason games after a tweet by the Houston Rockets' team manager in support of Hong Kong protesters."Increasing fallout from Houston Rockets' GM's tweet supporting Hong Kong protests may cost Tencent its 490 million users who view the sport on its platforms," Bloomberg Intelligence analysts wrote.Stocks Blog: Hang Seng Bank, other banks fall in Hong Kong on Morgan Stanley downgradesCitigroup, Bloomberg reported, said the move to suspend the NBA broadcasts "will pose financial impact to Tencent," although it didn't specify by how much.Budweiser Co. APAC " which has run up nearly 19 per cent in just over a week since it debuted in Hong Kong " closed up 2.8 per cent at HK$32.50.Property stocks " which have suffered due to a decline in foot traffic at malls and at flat sales " were among the big losers, led by Link REIT, which fell 2.76 per cent to HK$83. Others that fell included Swire Pacific, down 2.6 per cent to HK$70.25, CK Asset Holdings, down 1.9 per cent to HK$51.25, and MTR, which fell 0.9 per cent to HK$43.20.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Seven of Hong Kong's biggest banks " including two note-issuing lenders " closed branches on Monday as strikes and protests brought large parts of the city to a standstill.HSBC Holdings said it had closed 10 of its branches at 2.30pm. Hang Seng Bank, a subsidiary of HSBC, said it had shut five branches for the whole day, while 15 more closed early, in the afternoon.Standard Chartered, one of the three banks that issue currency in Hong Kong, closed several branches in the afternoon, China Citic Bank International closed five out of its 30 branches, and Citibank closed two branches an hour earlier than usual.Singaporean lender DBS closed all of its branches in Hong Kong, saying it was for the safety of its staff.Most of the banks' closures were in areas including Tsuen Wan, Mong Kok, Tai Po and Admiralty.Meanwhile, ICBC Asia, the Hong Kong arm of Industrial and Commercial Bank of China, the country's largest lender, said on Monday evening it was shutting all its branches until further notice."We respect the decision of some staff if they decide to join the strike while we need to make sure the branch operation can continue," said Louisa Cheang, vice-chairman and chief executive of Hang Seng Bank."We have decided to close five small branches on Hong Kong Island for the whole day today to transfer manpower to support other branches. We also decided to close more branches in the afternoon for the safety concern of our staff. We will continue to monitor the situation."All three note-issuing banks in Hong Kong saw their shares fall to the lowest level in three months as a citywide strike disrupted travel and violent protests continued. At the same time, China's currency fell below a psychologically important level for the first time in a decade after its trade war with the US escalated again.Bank of China (Hong Kong) dropped 4.5 per cent on Monday morning to HK$27.8 before bouncing back to close at HK$28.1. Standard Chartered Bank went down 4 per cent to HK$62.3, and HSBC Holdings fell 1.8 per cent to HK$61. The wider Hang Seng Index dropped 2.9 per cent as strike action brought much of the city's transport network to a standstill.HSBC faced a double blow as its chief executive John Flint stepped down after just 18 months in office.Its subsidiary Hang Seng Bank plunged 4 per cent in the morning, also to a three-month low, to finish the morning at HK$174. It recovered slightly to close the day 3.6 per cent lower at HK$174.9. In a results announcement on Monday morning it said its expected credit losses and impairment charges had doubled to HK$510 million in the first half of this year."Banks and all sectors went down because of the slide of yuan and the strike. If [the strikes] become routine, like the protests over the past two months, it will be destructive," said Louis Tse Ming-kwong, managing director of VC Asset Management."Chief Executive Carrie Lam Cheng Yuet-ngor's speech on Monday morning provided no solution to Hong Kong's current crisis. These are all bad omen and led to the sharp fall of the market today."HSBC Group and BOCHK are the major mortgage providers in Hong Kong. The protests and strikes are going to hurt the property market in the medium term and hence may lead to more bad debts for banks." HSBC's CEO makes surprise departure as bank seeks different approachThe yuan on Monday morning fell below 7 against the US dollar for the first time in about 10 years, and just days after the US president threatened to impose a new 10 per cent tariff on US$300 billion worth of Chinese products from September 1.Shares of the big four state-owned Chinese banks all dropped to their lowest level in recent years on Monday morning. Bank of China fell 2.6 per cent to HK$3.05 while Agricultural Bank of China lost 2.6 per cent to HK$3.02 " both down to their lowest since mid-2016.Industrial and Commercial Bank of China slid 2 per cent, while China Construction Bank lost 2.53 per cent, both trading at their lowest in two years. Bank of China Communications, another major mainland Chinese lender, lost 1.4 per cent to trade at a one-year low.Ivan Li, head of CSL Securities Research, said the yuan's weakness was a more important factor than the protests in Hong Kong as the former would have a bigger impact on banks and companies."It should be noted that the recent move by the US Fed to cut the interest rate would probably be bad for the banks' net interest margins," Li said.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg Opinion) -- In a poor, underbanked country, there wouldn’t be anything unusual about imposing a $6.40–a-month penalty on depositors unable to keep at least $640 in their savings accounts. That’s just how financial exclusion works.But in rich Hong Kong, a city that gives banks more than $26 billion in annual earnings, it took a fintech revolution to make HSBC Holdings Plc drop its minimum-balance charge for 3 million customers — a fee it had levied for 18 years.Scrapping charges that annoy retail customers will buy the lender some protection against the city's eight virtual banks, which are preparing to go online and looking to build their deposit bases from zero. The challengers are expected to pay higher interest; they’re also unlikely to impose minimum-balance penalties. Now that HSBC, the market leader, has made its move, other bricks-and-mortar lenders may have to follow suit.While my colleague Nisha Gopalan and I remain skeptical about the impact of branchless, internet-only banks, the city’s established lenders like HSBC, BOC Hong Kong (Holdings) Ltd., Standard Chartered Plc and Hang Seng Bank Ltd. have another problem that can’t be papered over by tweaking fees: timing.After years of struggling in the post-financial crisis world of quantitative easing and cheap cash, Hong Kong banks have made out like bandits since the Federal Reserve started raising rates in late 2015. Outsize gains in net interest margin helped them outperform most global banks. Even at present, Hibor, the local interbank lending benchmark, is more than twice as high as banks’ cost of funding, which stays in check because cheap deposits are always slower to reset than loans.It may, however, prove to be a short-lived boom. With the Fed’s rate-increase cycle threatening to reverse, Hong Kong banks’ profitability is likely to come under pressure. Digital rivals, with deep-pocketed sponsors, are showing up just when weaker interest rates could shave 4% to 8% from earnings estimates of the city’s top deposit-taking institutions next year, according to Morgan Stanley. Profit expectations for 2021 have to be pruned by 6% to 13%, the investment bank’s analysts note. Oddly enough, it's the tech disrupters that could end up saving the very banks whose profit pools – among the world's biggest – they're aiming to capture.Five years ago, Hong Kong’s regulator had no room for Alibaba Group Holding Ltd.’s dual-class shares because holders’ voting rights would be unequal. Now, not only do the city’s investors want the company to return with a secondary listing, but its banks are also praying for a successful Alibaba share sale, which could raise as much as $20 billion. That might help lift sentiment, which has dimmed as China’s economy slows and trade tensions between Beijing and Washington fester.In Hong Kong, the IPO market and bank profitability are joined by the common thread of liquidity. Large share sales tend to soak up cash from the banking system, albeit briefly, pushing up Hibor even without a lift from U.S. Libor.That’s good for banks. Even then, Hong Kong lenders’ best season probably won’t last long after the June quarter ends. It could be some time before the Fed turns hawkish again. Meanwhile, the worst that can happen is its super-dovish stance drives Libor too low. A middling scenario would be one in which lenders nip a fee here, tuck a charge there to protect deposits from an assault by their virtual rivals, while a revived IPO market keeps Hibor — and banks’ interest margins — from crashing. If the city’s biggest share sale since 2010 can’t do the trick, then perhaps nothing will.To contact the author of this story: Andy Mukherjee at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
May 10 (Reuters) - Hang Seng Bank Ltd: * KATHLEEN C H GAN, HEAD OF FINANCE OF HSBC HOLDINGS PLC , HAS BEEN APPOINTED A NON-EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage:
May 3 (Reuters) - Hang Seng Bank Ltd: * DECLARES A FIRST INTERIM DIVIDEND FOR YEAR ENDING 31 DEC 2019 OF HK$1.4 PER SHARE Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)...
Feb 19 (Reuters) - Hang Seng Bank Ltd: * FY PROFIT ATTRIBUTABLE HK$24,211 MILLION VERSUS HK$20,018 MILLION * FOURTH INTERIM DIVIDEND OF HK$3.60 PER SHARE * DECLARED FOURTH INTERIM DIVIDEND OF HK$3.60 PER ...