According to JPMorgan, the latest personnel appointment at HSBC Holdings (00005) is a positive development that resolves the market's risk of uncertainty regarding the CEO.
According to a research report released by JPMorgan, even if the Fed cuts interest rates to 3%, the tangible return on equity (ROTE) of HSBC Holdings (00005) is expected to remain at 13%-15%. The total shareholder return of the company is expected to be 9.5% in 2025 or 9% at the end of the rate-cutting cycle. JPMorgan maintains its 'hold' rating on HSBC with a target price of HKD 83.
The bank stated that they were not surprised by the news of the appointment of Annie Zhou as the new CEO. Overall, the bank considers this a positive development that resolves the market's risk of uncertainty regarding the CEO. This personnel appointment implies the continuation of the current strategy, including measures to solidify HSBC's shareholder return.
