|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||21.00 - 21.09|
|52 Week Range||19.72 - 27.41|
|Beta (5Y Monthly)||0.86|
|PE Ratio (TTM)||14.01|
|Forward Dividend & Yield||0.71 (3.40%)|
|Ex-Dividend Date||Oct 15, 2019|
|1y Target Est||21.25|
SHANGHAI/HONG KONG (Reuters) - Chinese financial firms will deploy measures used during the SARS outbreak nearly two decades ago to combat the new virus when markets reopen next week, with traders set to work shifts and sales staff restricted to online-only pitches, sources said. China's stock and bond markets are the second-largest in the world, with equities trading in Shanghai averaging 222.9 billion yuan ($32.29 billion) a day in 2019 and the interbank bond market averaging 836 billion yuan, according to the Shanghai Stock Exchange and the central bank, respectively. Bank compliance rules mean that while staff such as analysts can work from home, traders must work from the office using secure internal systems.
Moody's Investors Service has downgraded The Hongkong and Shanghai Banking Corporation Limited (HSBC HK), Hang Seng Bank Limited and DBS Bank (HongKong) Limited's long-term Counterparty Risk Assessments to Aa2(cr) from Aa1(cr).
Hong Kong, January 21, 2020 -- Moody's Investors Service has downgraded The Hongkong and Shanghai Banking Corporation Limited (HSBC HK) and Hang Seng Bank Limited's long-term foreign currency bank deposit ratings to Aa3 from Aa2. At the same time, Moody's has revised outlook on the banks' long-term foreign currency bank deposit ratings to stable from negative, and the overall outlook on HSBC HK and Hang Seng Bank to negative(m) from negative.
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.
Moody's Investors Service has affirmed The Hongkong and Shanghai Banking Corp. Ltd's (HSBC HK) and Hang Seng Bank Limited's deposit ratings at Aa2/P-1. At the same time, Moody's has affirmed HSBC HK's Baseline Credit Assessment (BCA) and Adjusted BCA at a1, and affirmed all of the bank's other ratings and assessments. Moody's has also affirmed all ratings and assessments of The Hongkong and Shanghai Banking Corp. Ltd. (Sydney), The Hongkong and Shanghai Banking Corp. Ltd.(Singapore), and The Hongkong and Shanghai Banking Corp. Ltd (NZ).
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.
Hong Kong, September 17, 2019 -- Moody's Investors Service ("Moody's") has affirmed The Hongkong and Shanghai Banking Corporation Limited (HSBC HK) and Hang Seng Bank Limited's long-term local and foreign-currency bank deposit ratings at Aa2.
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.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Hang Seng Bank Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Hang Seng Bank (China) Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.