On July 5th, Morgan Stanley released a report stating that the stock prices of Hong Kong-based banks in the second quarter outperformed the Hang Seng index and believed that the tail risks of the industry have reduced, supporting the mean reversion of stock prices, but not revaluation.
Zhong Tong Finance APP learned that on July 5th, Morgan Stanley released a report stating that the stock prices of Hong Kong-based banks in the second quarter outperformed the Hang Seng index and believed that the tail risks of the industry have reduced, supporting the mean reversion of stock prices, but not revaluation.
Morgan Stanley stated that concerns about the tail risk of commercial real estate in mainland China are diminishing. In addition, some banks' returns to shareholders have positive surprises. However, although the valuation of the local Hong Kong banks is cheap, the positive surprises expected in the first half of this year's performance are limited, based on the growth of operating profits before provisions and credit costs.
Morgan Stanley expects that the performance of local Hong Kong banks in the second half of the year will be roughly similar to that of the Hang Seng index, and expects Bank of China Hong Kong (02388) and Dah Sing Bank (02356) to outperform their peers in the first half of the year.