Glory Finance on September 20 | Daiwa issued a report stating that after the Fed cut interest rates by 50 basis points, HSBC announced a 25 basis point reduction in the best rates and current savings deposit rates. Other banks also followed suit. This is in line with the bank's view that the speed of decline in best rates and savings rates will be half of the Fed's rate cut speed. The bank assumes that the US will cut rates by about 150 basis points by the end of next year. In an environment of falling interest rates, the key for Hong Kong banks lies in better loan or fee income growth, reduced credit risks, cost control, and to what extent capital risk can help offset the pressure on return on equity (RoE) from net interest margin. The bank points out that if RoE can continue to be close to Daiwa's forecast level, the total shareholder return (TSR) of such banks should be able to maintain a double-digit level. The bank believes that HSBC Holdings and Standard Chartered are positioned above Hang Seng Bank and BOC Hong Kong.