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<Research>Citi: Assuming Zero New Non-HK Resident Mainland Account Openings, 2028E HSBC HOLDINGS, STANCHART PBT Only Down ~2%
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Shares of HSBC HOLDINGS (00005.HK), STANCHART (02888.HK), PRU (02378.HK) and AIA (01299.HK) tumbled 5-8% yesterday (4th), following media reports that certain banks have suspended the opening of Hong Kong bank accounts for mainland customers, Citi said in its report. The development came after new rules issued by the CSRC on May 22, aimed at prohibiting unauthorized cross-border brokerage activities by offshore institutions. Meanwhile, the Hong Kong SFC issued a circular to brokers, and the HKMA sent letters to banks requesting a review of existing mainland customer accounts. The report cited HSBC as saying that it holds all necessary licenses across the businesses and markets in which it operates, and that it identified mainland Chinese customers as a growth opportunity at its recent Investor Day. At a meeting yesterday, STANCHART’s CFO said that most of the business currently under review relates to brokerage rather than banking, and that its existing policies already comply with regulatory requirements. He added that closing zero-balance accounts and requiring customer declarations are new regulatory requirements. Under a simple assumption of zero new account openings by non-Hong Kong resident mainland Chinese retail and Premier/Premium customers in Hong Kong, Citi estimated this would reduce its 2028 revenue forecast for HSBC by about USD1 billion, equivalent to around 2% of group PBT; for STANCHART, the reduction would be about USD200 million, also equivalent to roughly 2%. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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