Damo: HSBC Holdings (00005) and Standard Chartered Group (02888) valuations are more attractive than their Singaporean peers

The Zhitong Finance App learned that Morgan Stanley released a research report saying that the Hong Kong banking industry is generally favored, and that the valuation of HSBC Holdings (00005) /Standard Chartered Group (02888) is more attractive than its Singaporean counterpart. Among them, Standard Chartered Bank is thought to have greater potential for growth.

Although net interest spreads (NIM) benefited from rising interest rates, discussions in the Hong Kong market focused on the sustainability of short-term wealth and capital market growth. The bank sees balance sheet growth and capital markets as the next engine of structural growth. Any pullback caused by capital flow contains investment opportunities. Interest rates are once again in the spotlight, and investors are taking note of the net profit margin brought about by the Federal Reserve's recent rate hike. At the same time, they are also increasingly concerned about the sustainability of non-net interest income (NII) growth, especially after the announcement of the third quarter results.

The bank pointed out that the banking industry in Hong Kong is generally favored, and Standard Chartered Bank is considered to have greater potential for growth. This is in line with the bank's view that HSBC/Standard Chartered can benefit from improved balance sheet growth, cross-border capital flows, and structural expansion of capital markets in the Asian financialization process, and its valuation is more attractive than its Singaporean counterpart.