＜Research＞HSBC Research: CN Supports Revitalization of CN Property Sector; CM BANK Preferred

　　China launched a package of policies to support the revitalization of the property sector, including a 0.25 ppts reduction in the interest rate for individual housing provident fund loans, etc., HSBC Global Research issued a research report saying.

　　If the package of policy support measures is effective, the risk appetite of the financial system may improve, according to the report. However, net interest margin compression remains a specific challenge for the banking sector.

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　　Among Chinese banks, HSBC Global Research was bullish on CM BANK (03968.HK) -0.700 (-1.777%) Short selling $196.09M; Ratio 21.592% on its sustainable business model, with rating at Buy. Among financials, HSBC Global Research believed that insurance companies may benefit more than banks as asset owners.

　　A 50 bps drop in effective mortgage rates could affect net interest margins by 4-9 bps or pre-tax profit by 4-13%, according to HSBC Global Research's data analysis. PSBC (01658.HK) +0.020 (+0.438%) Short selling $87.81M; Ratio 31.186% and ABC (01288.HK) 0.000 (0.000%) Short selling $128.46M; Ratio 12.806% are the most sensitive banks, while CM BANK and CEB BANK (06818.HK) +0.020 (+0.769%) Short selling $2.93M; Ratio 4.941% are the least sensitive in HSBC Global Research's coverage.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-17 16:25.)

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