DBS favours Chinese banks; flags HSBC as long-term buy
The brokerage sees recent weakness in the bank’s Hong Kong-listed shares as an attractive buying opportunity
DBS Group Research has shifted its near-term preference towards Chinese banks, citing their potential outperformance in the current high-interest-rate environment. The brokerage identifies Hong Kong-listed China Construction Bank (CCB) as its top pick for the short term, while London and Hong Kong-listed HSBC are seen as an attractive long-term entry opportunity following its recent share price decline.
Analysts note that Chinese banks offer resilience against global rate volatility due to their relatively independent domestic yield movements and attractive dividends, which provide a buffer against global market volatility.
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