HSBC to keep the highest yield among Greater China region's banks, JPMorgan analysts say
The Hong Kong bank's shares may advance to HK$122 by the end of 2026, JPMorgan said after raising its price target on August 1 from a July 22 revision of HK$118. The stock rose 0.2 per cent in a declining market to HK$96.50 in Hong Kong on Wednesday.
The 160-year-old bank, which traces its roots to Hong Kong and Shanghai, was likely to return between 9 per cent and 11 per cent to shareholders this year, the highest yield among banks in the region, said JPMorgan analysts Katherine Lei, Lincoln Yu, Chen Haomin, Kian Abouhossein, Sheel Shah and Benkat Madasu.
The bank booked a one-off loss of US$2.1 billion from its diluted stake in Bank of Communications (Bocom), which drove its second-quarter pre-tax profit to slide 29 per cent from a year earlier to US$6.33 billion, HSBC
said on July 30 . Interim pre-tax profit fell 26.5 per cent to US$15.8 billion in the six months ended June.
A general view of HSBC Building in Central on July 30, 2025. Photo: Eugene Lee
It announced a second-quarter dividend of 10 US cents per share and set aside US$3 billion to buy back its own stock over the next three months.
The dividend will not be derailed because HSBC retains a capital buffer by carrying US$14 billion in outstanding threshold deductions, compared to Bocom's US$21 billion carrying value in the first half of the year. Any further impairment on Bocom below US$14 billion is expected to have a muted impact on HSBC's capital, dividend payments or share buy-backs, according to JPMorgan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
11 minutes ago
- South China Morning Post
To will or not to will: beyond the myths of will-making in Hong Kong
Few will argue against the wisdom of proper financial planning. But when it comes to planning for how one's assets should be applied after one's death, many will swiftly put an end to the conversation. Why is the concept of making a will taboo? Will-making is certainly not a new concept to man. It has a very long history. In China, will-making was recognised and regulated since the Western Han dynasty (202BC – AD9). In the United Kingdom, the Statute of Wills (33 Hen. 8. c. 1) was enacted in 1540 to provide for devising land by will. So any objection to wills cannot be based on lack of familiarity. However, a recent survey suggests that only about 20 per cent of Hong Kong residents have made wills. It may be helpful to start by identifying what a will is. A will is a written instrument by which a person, called the 'testator', makes a disposition of his or her assets to take effect after his or her death. In other words, you set out a plan on how you would like your own assets to be used or distributed after you pass away. One can immediately see the similarity in rationale between financial planning during your life and making a will that deals with those same assets you have hitherto carefully planned for when you are no longer here. After all, having planned to provide for yourself and those you care about during your life, why would you not want to continue to provide for the people or causes that you care for, after you are gone?
South China Morning Post
11 minutes ago
- South China Morning Post
Bottled water brands seize on Hong Kong procurement scandal to promote products
Some bottled water brands in Hong Kong are taking advantage of a growing government procurement scandal to promote their products. Watsons Water posted on social media on Wednesday that its products were 'safety and quality assured', highlighting its strictly controlled production processes, which included multiple filtration and high-temperature distillation. The post received almost 100 reactions. Another local drinking water manufacturer, Swire Coca-Cola, posted on Facebook on Tuesday night that its Bonaqua bottled water was locally produced and 'a trustworthy option'. The post, which received around 140 likes and laughing reactions – significantly more than the account's usual engagement – added that all products complied with international safety standards, thereby 'safeguarding customers' health'. The posts garnered high engagement amid a growing controversy surrounding the drinking water supplier for Hong Kong's civil service. Xin Ding Xin Trade, the company that won the HK$52.9 million (US$6.8 million) government procurement contract to supply drinking water to offices on Hong Kong Island and some outlying islands, was discovered to have used fraudulent documents and provided products with false trade descriptions.
South China Morning Post
an hour ago
- South China Morning Post
A Hong Kong recipe to beat restaurant crisis – clever concepts, cheaper meals?
Hong Kong's restaurant sector is in crisis, with a wave of closures, shrinking margins and residents lured by cheaper options locally and across the border. In the second of a two-part series, the Post looks at how operators are bucking the trend to thrive and survive. Read part one here Shortly after Italian chef Stefano Rossi opened his restaurant in one of Hong Kong's poorest neighbourhoods, he began to worry he had bitten off more than he could chew. The restaurant, tucked away in a corner of the food court at Dragon Centre shopping centre in Sham Shui Po, was racking up daily losses. But its fortunes began to change after a few weeks, following positive reviews on social media. 'We got kind of lucky at the beginning, because some video went viral,' said Rossi, who helped design the first menu of the popular Italian restaurant chain Pici. The unusual choice of location was all part of the package, as Rossi set his sights on luring curious diners who had few options for quality Western cuisine in the neighbourhood. 'I knew from day one that this place had very good potential. The area is very busy and we also want to give a chance to the nearby residents to taste real Italian flavour,' he said. Rossi added that he was keen to offer lower prices than other sit-down restaurants while keeping quality high by making all the pasta and sauces by hand.
