HSBC's Stock Performance and Upcoming Earnings Report

HSBC's stock experienced a nearly 4% drop last Friday, reaching a low of 133 HKD. According to Ming Pao, the group is set to announce its earnings at the end of this month on February 25. Bloomberg Intelligence notes that since the third-quarter earnings release, HSBC's stock price has risen by over 30%. This increase is generally seen as a reflection of improved revenue prospects. The market anticipates that the momentum in deposit growth, the rise in HIBOR, and structural hedging strategies may help offset the impact of expected U.S. interest rate cuts on the bank's interest income. The privatization of Hang Seng Bank and its effect on earnings per share (EPS) is expected to be a key focus for the market, particularly regarding the synergies in wealth management and transaction banking services.