News

UK-China Business Dialogue: The UK and China are set to revive the "Golden Era" business dialogue during Prime Minister Keir Starmer's upcoming visit to China, with participation from major companies from both nations.
Participating Companies: Notable UK companies involved include AstraZeneca, BP, and HSBC, while Chinese firms include Bank of China and BYD Company.
Impact of US Politics: US President Donald Trump's comments regarding Greenland may influence Starmer's visit, highlighting the interconnectedness of international relations.
Visit Details: The UK is expected to announce specifics about Starmer's itinerary and visit arrangements soon, following the recent approval of a new site for the Chinese Embassy in the UK.

HSBC Earnings Outlook: Barclays predicts HSBC will significantly exceed earnings guidance due to favorable conditions in Hong Kong and the integration of Hang Seng Bank, maintaining an Overweight rating and raising the target price from GBP12.3 to GBP14.
US Interest Rates Impact: The bank's net interest income (NII) is expected to remain 4-5% above market consensus even if US interest rates fall to 2%, indicating resilience in HSBC's performance.
Standard Chartered Performance: Barclays anticipates Standard Chartered will improve its return on tangible equity (RoTE) to 15% by 2028, although 2026 may present challenges with a potential drop to 13%.
Standard Chartered Rating Update: The broker reaffirmed an Equalweight rating for Standard Chartered, increasing the target price from GBP16 to GBP19, reflecting a cautious but optimistic outlook.

CICC Report on HSI Adjustments: CICC predicts potential blue chip stocks for inclusion in the HSI based on semi-annual adjustments and quantitative criteria, highlighting companies like ZIJIN GOLD INTL and YUM CHINA.
Short Selling and Inflows: The report details short selling ratios and inflows for various stocks, indicating market activity and investor sentiment towards companies such as BEONE MEDICINES and XPENG-W.
Potential Replacements for HANG SENG BANK: Following the delisting of HANG SENG BANK, companies like STANCHART and SWIREPROPERTIES are identified as potential candidates to fill the vacancy.
Market Performance Overview: The report includes a snapshot of stock performance, with some companies experiencing gains while others face declines, reflecting the mixed market conditions.

Annual Review Announcement: The Hang Seng Indexes Company will announce the results of its annual review of major Hong Kong stock indices on February 13, which will impact the eligible stocks for Southbound Stock Connect.
Potential New Additions: CICC forecasts that ZIJIN GOLD INTL, YUM CHINA, and BEONE MEDICINES are likely to meet the inclusion criteria for the Hang Seng Index, while several other companies may fill the gap left by HANG SENG BANK's removal.
Market Capitalization Considerations: Companies like STANCHART, SWIREPROPERTIES, and SINO LAND are also potential candidates for inclusion based on market capitalization and industry coverage, though their inclusion remains uncertain.
Southbound Stock Connect Adjustments: CICC anticipates that 44 stocks, including JD INDUSTRIALS and CHUANGXIN IND, will become eligible for inclusion in Southbound Stock Connect, while 25 stocks may be removed from the list.

Banking Growth Outlook: Goldman Sachs predicts continued growth in the banking sector for ASEAN and Hong Kong banks from 2025 into 2026, driven by strong deposit inflows rather than traditional loan growth.
Profitability Expectations: Regional banks are expected to see improved profitability and potential upward revisions in earnings guidance, particularly for Indonesian banks due to easing funding cost pressures.
Valuation Insights: Compared to global peers, regional banks' valuations remain undemanding, suggesting room for growth and positive catalysts in the coming years.
Stock Ratings: Various banks across Thailand, Indonesia, Singapore, and the Philippines received updated ratings and target prices, with several banks in Indonesia and Singapore being rated as "Buy."
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