On October 8th, Morgan Stanley released a research report stating that they have lowered the target price from 78.4 Hong Kong dollars to 76.8 Hong Kong dollars, and maintained a "shareholding" rating. $HSBC HOLDINGS (00005.HK)$ HSBC Holdings and Stanchart will announce their performance in October and November respectively. In particular, the outlook for the net interest margin (NIM) in the 2025 fiscal year, as well as Stanchart's future capital return plan, will be crucial. Morgan Stanley also points out a preference for international banks over local banks. Overall, Stanchart is currently Morgan Stanley's top choice. $STANCHART (02888.HK)$Please use your Futubull account to access the feature.$BOC HONG KONG (02388.HK)$ Comparing with local banks, Morgan Stanley prefers international banks. In general, Stanchart is the top choice for Morgan Stanley.

The bank stated that lower quarterly average HIBOR and soft loan growth will keep net interest income (NII) subdued, and it is expected to be the main impact of interest rate decline in the 2025 fiscal year. The bank also noted that non-interest income is expected to remain strong with continued robust wealth and market revenue support.

Morgan Stanley expects good control of banking costs and maintenance within the expected range. If capital market revenues remain unchanged, performance-related compensation may be higher. The bank expects no unexpected credit losses, but non-performing loans in Hong Kong's commercial real estate sector may still rise.

Furthermore, Morgan Stanley expects HSBC Holdings to repurchase $3 billion worth of stocks again; as for Stanchart, it may provide the latest information on its $5 billion capital return plan for the 2024 to 2026 fiscal years, with the latest market consensus estimating an amount exceeding $8 billion.