HK Stock Market Move | Hong Kong bank stocks continue to fall, with Standard Chartered (02888) falling over 5% and HSBC Holdings (00005) dropping nearly 4%.

Hong Kong bank stocks continued to fall. As of the time of writing, STANCHART (02888) dropped by 5.58% to HK$187.8; HSBC HOLDINGS (00005) fell by 3.8% to HK$136.7; BOC HONG KONG (02388) dropped by 2% to HK$46.94; BANK OF E ASIA (00023) fell by 1.05% to HK$13.21. In terms of news, regarding the recent closely watched issue of mainland investors opening bank accounts in Hong Kong, a spokesperson for the Hong Kong Monetary Authority stated on June 6 that mainland customers can still apply for bank accounts in Hong Kong as usual. Overall, the account opening process has been smooth, and Hong Kong regulatory authorities have maintained close and regular communication with mainland regulatory authorities. Morgan Stanley indicated that both HSBC and Standard Chartered have stated that their operations fully comply with regulatory guidelines and expect limited impact on their wealth management businesses. JP Morgan estimated that by 2025, mainland visitor-related businesses would only contribute about 2% to the revenue of HSBC and Standard Chartered, including wealth management fees and net interest income from existing and new mainland visitor clients. This would mean a mid-single-digit percentage contribution to earnings per share. The bank believes that if negative sentiment continues to be overreacted, it may create buying opportunities.