<Daily Summary> HSI Ends at 26,765, Gaining 175 Points; HSTI Finishes at 5,260, Dropping 10 Points; HAIDILAO Surges Over 6%; HSBC HOLDINGS, TINGYI, SINOPHARM, TIME INTERCON, and WANGUO GOLD GP Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 175 points (0.7%) to 26,765, while the Hang Seng Technology Index (HSTI) fell by 10 points (0.2%) to 5,260, and the Hang Seng China Enterprises Index (HSCEI) increased by 26 points (0.3%) to 9,034, with a total market turnover of $236.77 billion.
Active Heavyweights: Notable stock movements included PING AN (+1.9%), MEITUAN (+1.6%), and TENCENT (+0.5%), while XIAOMI (-0.4%) and HKEX (-0.3%) saw declines.
Significant Gainers: HAIDILAO surged by 6.2%, HSBC HOLDINGS rose by 5.5% to a new high, and LONGFOR increased by 4.6%, while XINYI SOLAR and WH GROUP experienced declines of 3.6% and 3.3%, respectively.
Noteworthy Stocks: RIMAG GROUP dropped significantly by 10.6%, while TIME INTERCON and WANGUO GOLD GP saw increases of 10.2% and 6.9%, respectively, with both hitting new highs.
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JPM: HSBC HOLDINGS Exceeds Expectations in Results and Guidance; Stock Price Expected to Rise
Stock Performance: HSBC Holdings saw a stock price increase of 5.47% following the announcement of its 2025 results, with short selling at $1.68 billion and a ratio of 27.069%.
Financial Results: The bank's 4Q25 revenue and underlying pre-tax profit exceeded market expectations by 3% and 9%, respectively, with a CET1 ratio of 14.9%, surpassing expectations by 20 basis points.
Updated Guidance: HSBC updated its return on tangible equity (ROTE) guidance for the next three years to 17% or above, and projected a revenue growth of 5% by 2028, both exceeding previous and market expectations.
Analyst Ratings: JPMorgan maintained an Overweight rating on HSBC with a target price of HKD 165, while Morgan Stanley noted a 10% beat in 4Q25 pre-provision operating profit and raised its target price to $149.
HSBC Holdings Shares in London Rise 5.1% in Early Trading, Outpacing HK Closing Price by 0.4%
Stock Performance: HSBC's London share price rose by 5.1% to GBP13.56, with intraday peaks reaching GBP13.7, reflecting a positive market response.
Financial Results: The bank reported a 7% year-over-year decline in profit before tax (PBT) for 2025, totaling US$29.907 billion, which was close to analysts' expectations.
Earnings Per Share: HSBC's basic earnings per share (EPS) for the year was reported at US$1.21.
Dividends Declared: The group announced a fourth quarterly dividend of US$0.45, bringing the total dividend for the year to US$0.75, surpassing forecasts.
Citi Reports HSBC HOLDINGS 4Q25 Adjusted PBT Exceeds Expectations; Upgraded Targets Indicate Strong Growth
Citi Report on HSBC Holdings: Citi's report indicates HSBC Holdings achieved an underlying PBT of USD 8.6 billion for 4Q25, exceeding consensus by 9%, with revenue outperforming expectations by 3%.
Financial Metrics and Guidance: The CET1 ratio is projected to decrease to 13.8% post-privatization of Hang Seng Bank, with the group anticipating USD 500 million in incremental synergies and raising its RoTE target for FY26-FY28 to 17% or higher.
Broker's Perspective: Citi views the results positively, highlighting strategic updates and new information on Hang Seng Bank, which are expected to lead to healthy upgrades.
Rating and Target Price: Citi has rated HSBC Holdings as a Buy, setting a target price of HKD 143.3.
BNP Paribas: HSBC HOLDINGS Posts Impressive Results and Increases Forecast Amid Surprising Synergies from Hang Seng Bank Privatization
4Q25 Results: HSBC Holdings reported 4Q25 results that exceeded market expectations, with net interest income 6% higher than anticipated, leading to total revenue and pre-provision profit surpassing forecasts by 3% and 7%, respectively.
Hang Seng Bank Privatization: The privatization of Hang Seng Bank is expected to yield a total benefit of $900 million for HSBC, including $500 million in synergies and $400 million in potential additional gains, with restructuring costs slightly above market consensus at $600 million.
Positive Outlook: HSBC has revised its Return on Tangible Equity (RoTE) target for 2026-2028 to '17% or higher,' indicating a more optimistic growth forecast than previously stated, with expected annual revenue growth of 5% by 2028.
Analyst Rating: BNP Paribas has rated HSBC Holdings' shares as Outperform, setting a target price of GBP14.15 (approximately $149.65), highlighting it as a top pick in the sector.
G Sachs: HSBC HOLDINGS Exceeds Expectations in 4Q25 Results; Positive Operating Outlook for This Year
HSBC's Strong 4Q25 Performance: HSBC reported a PBT of USD8.6 billion for 4Q25, exceeding expectations due to strong banking NII and lower impairments, with a credit cost of only 37 bps.
Dividend Announcement: The board declared an annual DPS of US75 cents, surpassing the market consensus of US72 cents, reflecting confidence in the bank's financial health.
Privatization Benefits: HSBC's privatization of Hang Seng Bank is projected to yield total benefits of USD900 million, including significant synergies and additional revenue expected by 2028.
Positive Future Outlook: HSBC's 2026 guidance and three-year targets indicate robust growth and shareholder returns, with market expectations for PBT likely to be revised upward by about 6%.
M Stanley: HSBC HOLDINGS 4Q25 PPOP Exceeds Expectations by 10%; Price Target Raised to $149
Stock Performance: HSBC Holdings saw a significant increase in its stock price, rising nearly 4.1% to a high of $140.8, with a current price of $139.9 and a short selling ratio of 35.058%.
Strong Financial Results: The company reported a 10% increase in 4Q25 underlying Ppop, exceeding market expectations, driven by a 6% increase in net interest income and improved capital performance.
Positive Guidance: HSBC raised its net interest income guidance for 2026 to at least $45 billion and increased its return on tangible equity (ROTE) guidance to 17% or higher, indicating strong operational confidence.
Analyst Upgrades: Following the results announcement, Morgan Stanley raised its earnings forecast for HSBC by 9-12% and upgraded its target price from $138.1 to $149, maintaining an Overweight rating on the stock.
JPM: HSBC HOLDINGS Exceeds Expectations in Results and Guidance; Stock Price Expected to Rise
Stock Performance: HSBC Holdings saw a stock price increase of 5.47% following the announcement of its 2025 results, with short selling at $1.68 billion and a ratio of 27.069%.
Financial Results: The bank's 4Q25 revenue and underlying pre-tax profit exceeded market expectations by 3% and 9%, respectively, with a CET1 ratio of 14.9%, surpassing expectations by 20 basis points.
Updated Guidance: HSBC updated its return on tangible equity (ROTE) guidance for the next three years to 17% or above, and projected a revenue growth of 5% by 2028, both exceeding previous and market expectations.
Analyst Ratings: JPMorgan maintained an Overweight rating on HSBC with a target price of HKD 165, while Morgan Stanley noted a 10% beat in 4Q25 pre-provision operating profit and raised its target price to $149.
HSBC Holdings Shares in London Rise 5.1% in Early Trading, Outpacing HK Closing Price by 0.4%
Stock Performance: HSBC's London share price rose by 5.1% to GBP13.56, with intraday peaks reaching GBP13.7, reflecting a positive market response.
Financial Results: The bank reported a 7% year-over-year decline in profit before tax (PBT) for 2025, totaling US$29.907 billion, which was close to analysts' expectations.
Earnings Per Share: HSBC's basic earnings per share (EPS) for the year was reported at US$1.21.
Dividends Declared: The group announced a fourth quarterly dividend of US$0.45, bringing the total dividend for the year to US$0.75, surpassing forecasts.
Citi Reports HSBC HOLDINGS 4Q25 Adjusted PBT Exceeds Expectations; Upgraded Targets Indicate Strong Growth
Citi Report on HSBC Holdings: Citi's report indicates HSBC Holdings achieved an underlying PBT of USD 8.6 billion for 4Q25, exceeding consensus by 9%, with revenue outperforming expectations by 3%.
Financial Metrics and Guidance: The CET1 ratio is projected to decrease to 13.8% post-privatization of Hang Seng Bank, with the group anticipating USD 500 million in incremental synergies and raising its RoTE target for FY26-FY28 to 17% or higher.
Broker's Perspective: Citi views the results positively, highlighting strategic updates and new information on Hang Seng Bank, which are expected to lead to healthy upgrades.
Rating and Target Price: Citi has rated HSBC Holdings as a Buy, setting a target price of HKD 143.3.
BNP Paribas: HSBC HOLDINGS Posts Impressive Results and Increases Forecast Amid Surprising Synergies from Hang Seng Bank Privatization
4Q25 Results: HSBC Holdings reported 4Q25 results that exceeded market expectations, with net interest income 6% higher than anticipated, leading to total revenue and pre-provision profit surpassing forecasts by 3% and 7%, respectively.
Hang Seng Bank Privatization: The privatization of Hang Seng Bank is expected to yield a total benefit of $900 million for HSBC, including $500 million in synergies and $400 million in potential additional gains, with restructuring costs slightly above market consensus at $600 million.
Positive Outlook: HSBC has revised its Return on Tangible Equity (RoTE) target for 2026-2028 to '17% or higher,' indicating a more optimistic growth forecast than previously stated, with expected annual revenue growth of 5% by 2028.
Analyst Rating: BNP Paribas has rated HSBC Holdings' shares as Outperform, setting a target price of GBP14.15 (approximately $149.65), highlighting it as a top pick in the sector.
G Sachs: HSBC HOLDINGS Exceeds Expectations in 4Q25 Results; Positive Operating Outlook for This Year
HSBC's Strong 4Q25 Performance: HSBC reported a PBT of USD8.6 billion for 4Q25, exceeding expectations due to strong banking NII and lower impairments, with a credit cost of only 37 bps.
Dividend Announcement: The board declared an annual DPS of US75 cents, surpassing the market consensus of US72 cents, reflecting confidence in the bank's financial health.
Privatization Benefits: HSBC's privatization of Hang Seng Bank is projected to yield total benefits of USD900 million, including significant synergies and additional revenue expected by 2028.
Positive Future Outlook: HSBC's 2026 guidance and three-year targets indicate robust growth and shareholder returns, with market expectations for PBT likely to be revised upward by about 6%.
M Stanley: HSBC HOLDINGS 4Q25 PPOP Exceeds Expectations by 10%; Price Target Raised to $149
Stock Performance: HSBC Holdings saw a significant increase in its stock price, rising nearly 4.1% to a high of $140.8, with a current price of $139.9 and a short selling ratio of 35.058%.
Strong Financial Results: The company reported a 10% increase in 4Q25 underlying Ppop, exceeding market expectations, driven by a 6% increase in net interest income and improved capital performance.
Positive Guidance: HSBC raised its net interest income guidance for 2026 to at least $45 billion and increased its return on tangible equity (ROTE) guidance to 17% or higher, indicating strong operational confidence.
Analyst Upgrades: Following the results announcement, Morgan Stanley raised its earnings forecast for HSBC by 9-12% and upgraded its target price from $138.1 to $149, maintaining an Overweight rating on the stock.
