Chinese Banks, HSBC and Standard Chartered Outlook to be Shadowed by US Tariffs
Chinese lenders including Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. will report earnings as the US-China trade war threatens to erode their margins.
China may need more stimulus measures including rate cuts as the economy faces tariff risks, which could dim margin outlook for these banks, according to Bloomberg Intelligence analysts Francis Chan and Nicholas Ng.
In the latest twist, US President Donald Trump appears to be softening his stance toward China. The Trump administration is considering reducing tariffs on Chinese imports, in some cases by more than half, in a bid to deescalate tensions, the Wall Street Journal reported Wednesday.
While Trump said his administration was talking with China on trade, Chinese officials have dismissed speculation that progress has been made in bilateral communications, a sign of ongoing disconnect between the two nations.
HSBC Holdings Plc and Standard Chartered Plc are also vulnerable to such risks, with BI saying almost 40% of their revenue would be impacted by declining regional trade volume.
Highlights to lookout for:
Monday: Oriental Land's fourth-quarter operating profit likely surged 51%, consensus shows. The Osaka Expo and opening of Junglia in Okinawa, along with heat waves may be risk factors to traffic heading into the summer, Jefferies said. The key focus will be the new midterm plan, which is expected alongside the results. Its pricing strategy and capital allocation will be watched closely.
Tuesday: Outlooks from Bank of China , ICBC , CCB and AgBank will be closely watched as uncertainty from US tariffs may dim earnings.
Wednesday: Tokyo Electron's fourth-quarter operating profit likely rose 25%, consensus estimates show, and it probably beat its own guidance, BI said. That was helped by strong demand for its high bandwidth memory chip for artificial intelligence. Operating profit in fiscal 2026 will likely rise modestly from a high base in 2025, when China stocked up on chip tools ahead of export curbs, according to BI.
Thursday: No major earnings of note.
Friday: Standard Chartered's quarterly adjusted pretax income likely rose 1.6%. The lender's Asia focus makes it vulnerable to the trade war, which threatens its revenue, BI said. Lending margins should narrow sequentially, in keeping with interest rate cuts.
This article was generated from an automated news agency feed without modifications to text.
First Published: 25 Apr 2025, 07:27 AM IST
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