HSI Rises by 175 Points; HSBC HOLDINGS Jumps Over 5% After Earnings Report; AI Large Model Stocks Decline
Market Performance: The HSI closed up 175 points (0.7%) at 26,765, while the HSCEI rose 26 points (0.3%) to 9,034; however, the HSTECH fell by 10 points (0.2%) to 5,260, with a total market turnover of HKD236.765 billion.
HSBC Holdings Results: HSBC Holdings saw a 5.5% increase in stock price to HKD142.7, despite a 7% year-on-year drop in reported profit before tax for 2025, while Standard Chartered's stock fell 2.2% due to concerns over expense growth.
Commodity and Tech Stocks: Commodity stocks like Zhaojin Mining and China Gold International performed well, with gains of 3% and 4.5%, respectively, while tech stocks showed mixed results, with JD-SW and Meituan-W gaining slightly, while several AI-related stocks experienced significant declines.
Short Selling Trends: Short selling activity was notable across various sectors, with HSBC and JD-SW having high short selling ratios, while AI stocks like Knowledge Atlas and Minimax-WP faced substantial drops in their stock prices.
Trade with 70% Backtested Accuracy
Analyst Views on 00005
About the author
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.
