Why HSBC's structural increase in competition is awkwardly timed

Is fresh catalyst lacking?

According to CLSA, a structural increase in competition and an increasingly uncertain medium-run outlook for Hong Kong come at an awkward time for HSBC, as its Hong Kong and China earnings (the latter mostly associate income from Bocom) have increased as a proportion of group earnings.

This makes HSBC more reliant on earnings streams that are under significant medium-term threat.

Here's more from CLSA:

The stickiness of ROE at around the 10-11% level dominates our 12-month view on HSBC, leaving the current price/book ratio of 1.1x about fair value.

Having largely completed its 2.5-year restructure, HSBC lacks a fresh catalyst for performance, leaving investors to wait for the upturn in US-dollar interest rates to produce the long-awaited lift in returns. In the meantime, we see HSBC as fair value, with little absolute or relative upside.

Also Read

Bangkok Bank logs net profit of $1.05b for 9M 2024

Banks face value creation challenge despite record revenues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit