HSBC Securities published a report stating that the impact of the alleged false publicity on Bawang products was not significant, and that Overlord's “increased holdings” rating was maintained, with a target price of 4.1 yuan to reflect the expected price-earnings ratio of 20.7 times that in 2011. According to the HSBC Securities report, the alleged false publicity about Bawang products had little impact. The bank said it expects the mainland to tighten relevant measures to reduce product errors among product companies. The bank also said that management pointed out that sales in the first week of August had rebounded, while sales continued to rebound the following week. The bank expects sales to still fall by 30 to 40% year on year, but there are clear signs of improvement. In view of this, the net profit of HSBC Securities in 2010 and 2011 was 298 million and 492 million (RMB, same below), with earnings per share of 0.1 yuan and $0.17; the expected return on equity was 14.2% and 20.9%, respectively. When Bawang went public, its sponsors were Morgan Stanley and HSBC, respectively. Bawang Group closed at HK$3.57 on Friday.