HSBC: Market overly optimistic about Hong Kong banks, downgrades China Construction Bank Hong Kong (02388) rating to "neutral"

According to the Wisdom Financial APP, Morgan Stanley released a research report stating that the potential for an upward dividend policy of Bank of China Hong Kong (02388) may alleviate the impact of declining earnings per share, but is not enough to drive a re-rating. Therefore, the rating has been downgraded from "buy" to "neutral", with the target price raised from 33.9 Hong Kong dollars to 37.7 Hong Kong dollars. The bank has lowered its earnings forecasts for Bank of China Hong Kong for the fiscal years 2025 and 2026 by 22% and 24% respectively, to reflect the significant decrease in the Hong Kong Interbank Offered Rate (HIBOR) leading to a contraction of net interest margins and a decrease in pre-provision operating profit.