UBS published a research report stating that the profit per share and target price of Hong Kong bank stocks will be lowered in the long run due to factors such as capital tightening, excessive net loan growth, and falling property prices in Hong Kong. UBS maintained the “buy” rating of Daxin Finance (00440-HK), cut the target price by 49.57% to $29.5, and maintained the “neutral” ratings of Bank of China Hong Kong (02388-HK), Bank of East Asia (00023-HK), Hang Seng Bank (00011-HK), and Wing Heng Bank (00302-HK). UBS pointed out that due to the rapid growth of loans, the Bank of Hong Kong's capital continued to be tight. It is expected that the macroeconomic economy will continue to deteriorate, and UBS expects loan growth to fall to the number of units in the next 6 to 12 months. Bank loans in Hong Kong increased by 55% to 60% from 2009 to 2011, equivalent to net loans exceeding 100% of GDP in 2010. UBS expects this increase to lead to a 1.5% to 2% increase in non-performing loans. If China experiences a hard landing, the situation will be even worse. UBS said that the Bank of Hong Kong will review real estate assets every six months. Affected by the decline in property prices in Hong Kong, the profit and book value of the Bank of Hong Kong are expected to drop by 10% to 15% in the next two years. UBS believes that Standard Chartered (02888-HK) can outperform local banks, and that Bank of China Hong Kong's strong earnings support has also saved its rating from being downgraded to a “negative” rating.