France and Pakistan published a report that they are optimistic about Hang Seng (00011.HK). Because of its abundant capital situation, it can strengthen growth momentum and shareholder returns. The rating was raised from “hold” to “buy”, and the target price rose from 161.4 yuan to 173.8 yuan. They believe that Hang Seng has a higher return on equity than its peers. It believes that Hang Seng has a higher return on equity than its peers, that mainland business risks are lower, and that it is more sensitive to interest rate hikes.

The bank believes that benefiting from the inclusion of RMB in the SDR, the short-term trade volume of Bank of China Hong Kong (02388.HK) increased, and long-term business opportunities increased. The current price is 1.3 times the market account rate forecast for next year. The valuation is attractive. The rating was raised from “hold” to “buy”, and the target price dropped from 35.5 yuan to 29.6 yuan.

Furthermore, the bank removed the valuations of Daxin (02356.HK) and Daxin Finance (00440.HK) due to potential mergers and acquisitions. It is expected that they will not be acquired in the next year. The bank downgraded the ratings of both from “buy” to “reduce holdings”. The target price of the former dropped from $22.1 to $12.3, while the latter dropped from $59.7 to $36.6.