HK Stock Market Move | Hong Kong bank stocks continue to rise, with HSBC Holdings (00005) and Standard Chartered (02888) both hitting new highs.

Hong Kong bank stocks continued to rise in early trading, with HSBC Holdings and Standard Chartered both hitting new highs. As of the time of writing, HSBC Holdings (00005) rose by 2.81% to HK$117.2, while Standard Chartered (02888) rose by 2.09% to HK$180.7. On the news front, the Federal Reserve announced a 25 basis point rate cut and announced plans to expand its balance sheet by purchasing $400 billion in short-term government bonds this month. Bank of America Securities research report pointed out that HSBC Holdings is expected to achieve significant growth in two areas next year, including Hong Kong deposit business and Asian wealth management business; it believes that HSBC has a significant competitive advantage in these two areas, and management has also promised to increase investment in relevant fields, which is expected to further improve its competitive advantage and increase market share. Goldman Sachs also released a research report stating that although Standard Chartered's stock price on the Hong Kong Stock Exchange has risen by 83% this year, they believe there is still room for further revaluation. Goldman Sachs predicts that by the end of this year, the ROTE (return on tangible equity) of Standard Chartered after basic risk adjustments will reach 14.6%, exceeding the management's guidance of 13%, and will further increase to 15% in 2027 and 15.7% in 2028. Therefore, the bank predicts that Standard Chartered will raise its midterm ROTE guidance at its financial report in 2025 or its investor day event in May 2026, which could be a further catalyst for its stock price.