Changes in Hong Kong stocks | Xiaomo says the market is too worried about interest spreads being pressured. HSBC Holdings (00005) and Standard Chartered Group (02888) both rose more than 3%

The Zhitong Finance App learned that Bank of Hong Kong stocks rose across the board today. As of press release, HSBC Holdings (00005) rose 3.42% to HK$142.0; Standard Chartered Group (02888) rose 3.46% to HK$227.4; Bank of East Asia (00023) rose 2.64% to HK$18.29; and BOCHK (02388) rose 1.87% to HK$51.75.

According to the news, J.P. Morgan Chase released a research report saying that the stock price of Hong Kong banks outperformed the Hang Seng Index and the Hang Seng Financial Classification Index by 4% and 6% respectively in October, reflecting market concerns about deposit competition squeezing net interest spreads, and that the third-quarter results showed that rising market earnings would cause capital erosion. The bank believes that the market's concerns about interest spreads being pressured due to deposit competition may be excessive. Since banks are actively managing capital costs in anticipation of further interest rate hikes, the Hong Kong dollar still has plenty of liquidity; in other words, if HIBOR remains below 3% for a long period of time, deposit competition may cool down, or the return on assets will eventually be re-priced and raised, driving net interest spreads to expand.