As of a six to twelve month outlook, China International Capital Corporation maintains its bullish position on HSBC Holdings, mainly due to its sustained performance and high shareholder returns in an environment with longer-than-expected high interest rates. Additionally, the company's current valuation level is still not high. In the short term, Standard Chartered's stock price may have stronger positive support, as the bank is expected to display a strong second quarter performance, mainly due to maintaining growth momentum on the revenue side. Against the background of the postponed interest rate cut by the US Federal Reserve, it is believed that the Hong Kong economy will still face pressure. Recent macro-data do not show clear signs of improvement, therefore, the view that international banks are superior to local banks is maintained. The report mentioned that the current judgment and guidance of the European and American central banks on inflation prospects and interest rate reduction paths are relatively cautious, believing that even if the interest rate reduction cycle is opened, the central interest rate may still be higher than the pre-epidemic level, and high interest rates may become a new normal. The bank pointed out that the impact of a hawkish interest rate reduction by European and American banks on Hong Kong bank profits is controllable. According to market forecasts, the average interest rate level of the US dollar, British pound, and euro this year will decrease by 14, 19, and 44 basis points respectively from the end of last year, and further decrease by 91, 112, and 106 basis points next year. Under this scenario, the bank calculates that this year's pre-tax profits for HSBC Holdings and Standard Chartered will decline by 1.8% and 1.9%, respectively, and next year by 9.7% and 12.3%. However, considering that interest rate cuts are conducive to the recovery of credit demand, improvements in deposit structures, and growth in non-interest income, the downward pressure on interest income may be offset to some extent. The bank expects that HSBC Holdings will maintain an ROTE of 14% to 15% through 2024 to 2025 after adjustment, and Standard Chartered will maintain an ROTE of 11% to 12%.