HK Stock Market Move | Some Hong Kong bank stocks are falling, Goldman Sachs downgraded Hong Kong bank stocks' profit forecast, saying it is difficult to see a major revaluation of valuation.

Some Hong Kong bank stocks fell, as of press time, BANK OF E ASIA (00023) fell 4.64% to HK$10.28; DAHSING BANKING (02356) fell 3.32% to HK$7.58; BOC HONG KONG (02388) fell 2.34% to HK$29.2. Goldman Sachs released a research report stating that earnings forecasts for Hong Kong bank stocks for the years 2025 to 2027 were lowered by 14%, 19%, and 15% respectively, with an average reduction of 16%, and the average target price was lowered by 9%. Goldman Sachs indicated that with expectations of 5 rate cuts by the Federal Reserve this year, a decrease in net interest margin and an increase in credit costs will add downward risk to local Hong Kong banks. It is expected that in a scenario where loan growth is weak and profitability declines, significant revaluation is unlikely. J.P. Morgan released a research report stating that since April 2, the share prices of HSBC HOLDINGS and STANCHART have declined by 16.6% and 20.4% respectively, underperforming the Hang Seng Index by 2.1 and 5.9 percentage points. The bank believes that the market is betting on a global recession, which may lead to deeper rate cuts, a decrease in trading bank revenue, and higher credit costs. J.P. Morgan believes that in the event of a recession in the US and globally, currency center banks such as HSBC and Standard Chartered will be more vulnerable than local and mainland banks, so they believe that the above-mentioned two banks will underperform the market in the short term.