According to a research report published by Morgan Stanley, the recent decline in HSBC Holdings' stock price has made short-term valuations more attractive. The bank believes that adjustments have been excessive recently, and it is expected that the stock price will rise relative to the market index in the next 15 days. The bank pointed out that the third quarter results of foreign exchange control showed that wealth management capital flows remained steady, and the group is expected to have more capital space in 2027. Increased competition for deposits will put pressure on net interest spreads, but relatively many peers in foreign exchange control are in a better position. The current price is equivalent to the predicted dividend yield of 5.4% in 2027, and the price-earnings ratio is 9.4 times. The bank believes that it is more attractive than the valuation of Hong Kong and ASEAN financial stocks. The bank estimates that the probability of the above scenario occurring is about 70% to 80%. The target price is HK$173, and the rating is “increase in weight”.

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