Changes in Hong Kong stocks | Bank of Hong Kong stocks are rising across the board, the Democratic Party sweeps the US Congress, fiscal easing and US bond yields are cooling, boosting market sentiment

The Zhitong Finance App learned that Bank of Hong Kong stocks rose across the board. As of press release, HSBC Holdings (00005) rose 4.12% to HK$141.2; Standard Chartered Group (02888) rose 3.46% to HK$227; Bank of East Asia (00023) rose 3.09% to HK$17.68; and Dah Sing Bank Group (02356) rose 2.69% to HK$13.72.

According to the news, the Democratic Party swept through the US Congress, weakening the market's bets on further expansion of US military spending, but boosted European bank stock expectations for an improvement in the financing environment and credit prospects. As the midterm election results were announced one after another, US Treasury yields declined, and British, French, and Italian treasury yields also declined. The Stoxx Europe 600 Index once rose 4.5%, which is expected to be the best one-day increase since May.

In terms of performance, some banks already have the operating foundation to undertake valuation repairs. HSBC's profit before tax increased 10% year-on-year in the third quarter at a fixed exchange rate and excluding major projects; Santander's Tier 1 capital adequacy ratio (CET1) for common shares at the end of September was 12.7%, higher than the minimum requirement of 9.86%. Profit growth and capital buffers provided support for banks to absorb potential losses and maintain credit supply.