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<Research>HSBC Research: Base Case Doesn't Expect Banks to Book CHINA VANKE Exposures as Non-performing Loans This Yr; ICBC/ CCB/ CM BANK/ BOCHK/ HKEX Preferred
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Recent developments in CHINA VANKE (02202.HK) triggered concern in the market, with CHINA VANKE's share price and bond prices both falling significantly on 16 January, HSBC Global Research issued a research report saying. The broker's basic forecast is that CHINA VANKE's loans will remain performing loan until the end of 2025. While liquidity pressures on CHINA VANKE are likely to continue, HSBC Global Research's covered banks are not expected to book their CHINA VANKE exposures as non-performing loans before end-2025. In a bear case scenario, if exposures to CHINA VANKE had to be downgraded, the Hong Kong banking system's non-performing loan ratio would increase by 46 bps to 2.45%, while mainland China's non-performing loan ratio would increase by 7 bps to 1.64%. However, the overall impact would be manageable. The broker preferred ICBC (01398.HK), CCB (00939.HK), CM BANK (03968.HK), BOC HONG KONG (02388.HK) and HKEX (00388.HK). AAStocks Financial News |
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