Glonghui, January 5 | Goldman Sachs released a report saying that the losses suffered by the Bank of Hong Kong due to China's real estate risk exposure have risen. Investors have anticipated that the stock price has also reflected related negative factors. Currently, the impairment in the Hong Kong Bank of Hong Kong's real estate business is not too serious, but the exposure related to the Bank of Hong Kong is much larger. It is expected that many banks will need to start making moderate adjustments starting this year, but it is believed that the impact on bank profits is limited. Overall, Goldman Sachs lowered the Bank of Hong Kong's average earnings per share forecast by an average of 7% and 8% for the 2023-2024 fiscal year, 2% for the 2025-2026 fiscal year, and an average 6% reduction in the target price for the next 12 months. The bank maintained a “buy” rating for Standard Chartered Group (2888.HK), HSBC Holdings (0005.HK) and Bank of China Hong Kong (2388.HK), a “neutral” rating for East Asia (0023.HK) and Dah Sing Bank Group (2356.HK), and a “sell” rating for Hang Seng (0011.HK). Goldman Sachs maintained its target prices for Standard Chartered Group and HSBC Holdings at HK$85 and lowered the target prices of BOCHK Hong Kong, Hang Seng, East Asia and Dah Sing Bank to HK$28.8, HK$107, HK$12.1 and HK$6.4, respectively. According to Goldman Sachs, Standard Chartered has the lowest commercial real estate exposure in China in Hong Kong, which would be a comparative advantage; as for HSBC, it is optimistic about its current balance sheet, supply chain transfer business exposure, growing Chinese wealth management business, the potential to accelerate the pace of return on capital after completing the sale of the Canadian business, and a dividend return of about 8%.