HK Stock Market Move | Hong Kong banking stocks rose in late trading, with STANCHART (02888) up over 3% and HSBC HOLDINGS (00005) up nearly 2%.

Hong Kong banking stocks rose in late trading. As of press time, STANCHART (02888) rose 3.06% to HK$235.6; HSBC HOLDINGS (00005) rose 1.73% to HK$152.5; BOC HONG KONG (02388) rose 1.19% to HK$51.1; DAHSING BANKING (02356) rose 0.49% to HK$14.39. On the news front, reports today said that some banks have recently actively raised mortgage rebates to 2% and 2.5%, significantly above market levels. Wong Mei-fung, Managing Director of Centaline Mortgage, said that raising mortgage rebates helps banks efficiently attract mortgage customers and target client groups, and expects more banks to raise mortgage rebates to increase market competitiveness. HSBC released a research report stating that amid rising interest rates, weakening market activity and tightening regulation, the bank is more bullish on local Hong Kong banks than on non-bank financial stocks, as banks can directly benefit from rising net interest income while asset quality risks remain controllable. The bank said investors are questioning why Hong Kong banks kept the Hong Kong dollar prime rate unchanged after the Federal Reserve raised rates by 25 basis points in September. The bank believes Hong Kong banks have limited incentive to raise the prime rate. If the Federal Reserve further raises rates from the fourth quarter of this year through 2027, the bank expects Hong Kong dollar interest rates to move higher, which would benefit banks' net interest income.