HSI Closes 76 Points Lower; HANG SENG BANK Soars Approximately 26%; SMIC and HUA HONG SEMI Decline
Hong Kong Stock Market Performance: The HSI opened higher but closed down 76 points at 26,752, while the HSCEI and HSTECH showed mixed results. Total market turnover was HKD386.818 billion.
HSBC and Hang Seng Bank Developments: HSBC proposed to privatize Hang Seng Bank at a 30.3% premium, causing HSBC's stock to drop nearly 6% while Hang Seng Bank surged 25.9%. Other local banks also experienced gains.
AI and Chip Sector Fluctuations: AI-related stocks were volatile, with major chip makers like SMIC and Hua Hong Semi declining, while companies like ASMPT and Lenovo Group saw significant gains.
Power and Clean Energy Stocks Rise: Power utilities and clean energy stocks performed well, with notable increases in CGN Power, China Power, and Goldwind, reflecting a positive trend in these sectors.
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CICC Increases HSBC HOLDINGS (00005.HK) Price Target to $170.8 Following Strong 4Q25 Results
Company Performance: HSBC Holdings reported 4Q25 results that exceeded expectations, with adjusted revenue of $71 billion, a 5.3% increase YoY, and an annual adjusted net profit of $27.8 billion, up 12.5% YoY.
Future Outlook: CICC's research indicates positive guidance for HSBC's revenue growth over the next three years, prompting a 25% increase in the target price to $170.8 while maintaining an Outperform rating.
<Research>JPM: HSBC HOLDINGS (00005.HK) Management Offers Enhanced Clarity on Revenue Growth Path for 2026-2028
Positive Earnings Results: HSBC HOLDINGS reported 4Q25 results and interim ROTE guidance that exceeded expectations, leading to a 6% increase in share price on February 25, outperforming the HSI by 6 percentage points.
Future Growth Insights: The earnings briefing provided clearer insights into revenue growth for 2026-2028, net interest income drivers, and the roadmap for achieving business synergies.
Analyst Outlook: JPMorgan published a report indicating that HSBC HOLDINGS' stock price is likely to remain strong, maintaining an Overweight rating with a target price of $165.
Upcoming Investor Day: The next catalyst for HSBC HOLDINGS' stock performance is the Investor Day scheduled for May, which is anticipated to further influence investor sentiment.
UBS: HSBC HOLDINGS (00005.HK) Reports Solid 4Q25 Performance; Maintains Neutral Rating
Strong 4Q25 Results: HSBC Holdings reported a profit before tax that exceeded market expectations by 9%, with revenue and net interest income also surpassing estimates, although fee income fell slightly short.
Capital Ratios and Dividends: The CET1 capital ratio was reported at 14.9%, above consensus, and the bank declared a quarterly dividend of US$0.45 while suspending share buybacks, aligning with market expectations.
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.
CICC Increases HSBC HOLDINGS (00005.HK) Price Target to $170.8 Following Strong 4Q25 Results
Company Performance: HSBC Holdings reported 4Q25 results that exceeded expectations, with adjusted revenue of $71 billion, a 5.3% increase YoY, and an annual adjusted net profit of $27.8 billion, up 12.5% YoY.
Future Outlook: CICC's research indicates positive guidance for HSBC's revenue growth over the next three years, prompting a 25% increase in the target price to $170.8 while maintaining an Outperform rating.
<Research>JPM: HSBC HOLDINGS (00005.HK) Management Offers Enhanced Clarity on Revenue Growth Path for 2026-2028
Positive Earnings Results: HSBC HOLDINGS reported 4Q25 results and interim ROTE guidance that exceeded expectations, leading to a 6% increase in share price on February 25, outperforming the HSI by 6 percentage points.
Future Growth Insights: The earnings briefing provided clearer insights into revenue growth for 2026-2028, net interest income drivers, and the roadmap for achieving business synergies.
Analyst Outlook: JPMorgan published a report indicating that HSBC HOLDINGS' stock price is likely to remain strong, maintaining an Overweight rating with a target price of $165.
Upcoming Investor Day: The next catalyst for HSBC HOLDINGS' stock performance is the Investor Day scheduled for May, which is anticipated to further influence investor sentiment.
UBS: HSBC HOLDINGS (00005.HK) Reports Solid 4Q25 Performance; Maintains Neutral Rating
Strong 4Q25 Results: HSBC Holdings reported a profit before tax that exceeded market expectations by 9%, with revenue and net interest income also surpassing estimates, although fee income fell slightly short.
Capital Ratios and Dividends: The CET1 capital ratio was reported at 14.9%, above consensus, and the bank declared a quarterly dividend of US$0.45 while suspending share buybacks, aligning with market expectations.
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.
