The price of the capital of the company is increasing by more than 6%.
Stepping into the interest rate hike cycle, the market is worried about the risk of the property market turning. Morgan Stanley believes that the rise and fall of property prices has indeed affected the bank’s asset quality, loan growth and valuation. The bank has cut the target price of bank stocks by 5.7% to 27% in response to the increase in the cost of equity.
Hang Seng latest watch 250 BOC 45 yuan
After the adjustment, the latest target price of Hang Seng (00011) was $250, while BOC Hong Kong (02388) and East Asia (00023) were $45 and $22, respectively, which were lowered by 10% and 27% respectively. The bank maintained Hang Seng and BOCHK respectively. Focus on increasing shareholdings.
Affected by the news, local banking stocks were under pressure. Hang Seng closed at 196.9 yuan yesterday. The biggest drop was 3.2% in the whole day and it was a month low. The Bank of China Hong Kong and East Asia fell 1.6% and 3% respectively.
Property prices in Hong Kong have slowed down in recent months, and second-hand trading has also weakened significantly. Morgan Stanley said that investors are worried about the downturn in property prices, while paying attention to the impact of the property market reversal on the future earnings of bank stocks, the bank believes that there is no significant negative impact on bank asset quality, income and earnings, but instead investing The appetite and the market sentiment weakened, and the valuation was under pressure.
The bank stressed that banks are still optimistic that the bank can benefit from the interest rate hike, which will drive the net interest margin widening in the second half and next year. It is expected that the third quarter results will become a short-term share price catalyst.