HSBC Research's report indicates that the latest September banking industry data in Hong Kong once again confirms an optimistic outlook for the fourth quarter. Industry deposits increased by 0.8% monthly, and the Hong Kong dollar's composite financing costs also accelerated their decline, dropping by 17 percentage points monthly; The one-month average Hong Kong Interbank Offered Rate (HIBOR) in October remained at a strong level of 4.35%, partly due to the increased demand for the Hong Kong dollar from activities such as IPOs in the stock market. In addition, banks have taken action to defend their net interest margin; The daily average trading volume in the stock market is significantly higher than recent levels, which may reduce liquidity discounts in the market and lead to more new stock listings; Improved risk sentiment; and monthly loans recorded positive growth.

HSBC Research indicates that Hong Kong banks and the Hong Kong Exchanges and Clearing (00388.HK) will benefit from the gradual improvement in risk sentiment, leading to continued inflow of liquidity, driving deposit growth, increased fee income related to wealth management, and resilient net interest margins. Among Hong Kong financial stocks, the bank prefers Hong Kong Exchanges and Clearing and BOC Hong Kong (02388.HK), both rated as 'buy' with target prices of 382 yuan and 30.8 yuan respectively.