HSBC Holdings Plc and Standard Chartered Plc are expected to sustain strong returns on higher rates and Asian wealth fees, though China’s tighter capital-flow rules and cost pressures cloud the outlook. Wealth momentum at both banks remained positive, though it may have eased slightly after China launched a crackdown on cross-border trading, said Bloomberg Intelligence.
Costs will also be in focus, with HSBC cutting some benefits for senior staff and both lenders seeking greater efficiency through AI.
On the mainland, Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. should carry the bulk of late-September stimulus through the end of the year, extending their lead in a shrinking lending market, BI added.
In the AI space, CXMT Corp. and Unitree Robotics face cooling investor enthusiasm over spending concerns, while SK Hynix Inc. and Samsung Electronics Co. will test whether booming memory-chip profits can restore confidence after a sharp selloff. Monday: Wu Xi App Tec’s (2359 HK) results will indicate how likely it is to hit the top end of its upgraded revenue-growth guidance.
Tuesday: Higher Hong Kong interest rates and deposit growth were the main drivers of HSBC’s (HSBA LN) third quarter, according to BI. Wealth strength in Asia also contributed to revenue gains, but Chinese cross-border capital-flow rules contain some risk.
Wednesday: Standard Chartered’s (STAN LN) wealth management and global banking momentum should have bolstered results, said BI. Watch for cost discipline after management reiterated its full-year expenses outlook, with plans to accelerate AI-driven efficiencies.
Thursday: Samsung Electronics’ (005930 KS) memory business likely benefited from stronger-than-expected DRAM prices during the quarter, even as constrained shipments limited some of the upside. Quarterly DRAM revenue likely topped 100 trillion won ($76 billion) for the first time.
Friday: ICBC (1398 HK) could see net interest margin stabilize as deposit cost pressure eases, said BI. Fees could only grow modestly, as card and investment weakness offsets strength in wealth management, they added.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing