HSBC Bulls Retreat on Property, Rate Jitters Before Earnings
- Analysts have reduced their buy recommendations on the stock
- HSBC’s Hong Kong stock is trading above consensus price target
Wall Street bulls are turning cautious on HSBC Holdings Plc. before its results, as Hong Kong’s deepening property downturn added to their angst over geopolitical and economic risks.
HSBC shares’ buy-equivalent rating ratio has fallen to 50% this week ahead of the bank’s second-quarter results on Wednesday, the lowest level since 2021, according to data compiled by Bloomberg. The drop in buy recommendations reveals increasing concerns over potential ripple effects of soaring bad loans in Hong Kong’s real estate sector, as well as a sharp decline in borrowing costs.