STXU

HSBC HOLDINGS (00005.HK) -8.000 (-5.626%) Short selling $245.24M; Ratio 39.388% opened down 0.6% this morning (27th), before reversing gains at midday to close the half-day session up 0.6% at HKD143.1. HSBC announced its third-quarter results at noon, after which the stock slumped in the afternoon session. It was last reported at an intraday low of HKD133.6, down 6.05%, with turnover of 20.7811 million shares involving HKD2.86 billion.

Morgan Stanley published a report stating that HSBC's third-quarter pre-provision profit was 2.6% below market expectations, mainly due to a decline in corporate and institutional banking deposit balances in the Hong Kong market and deposit migration. The proportion of time deposits to total deposits rose from 36% to 38%. HSBC reiterated its guidance for net interest income of more than USD46 billion this year, but Morgan Stanley believes deposits will continue to migrate and lowered its net interest income forecast by 3%, below market expectations.

Morgan Stanley noted that HSBC's net interest income was 2% below market expectations, while other income was 0.8% below both the broker's and market expectations, dragging pre-provision profit below expectations. HSBC announced a share buyback of up to USD1 billion, in line with the broker's expectations. Its third interim dividend of USD0.1 per share also met expectations.

Morgan Stanley lowered its EPS forecasts for HSBC for 2027 to 2028 by 0.7% to 2.7%, and cut its TP from HKD176.9 to HKD173, while maintaining an "Overweight" rating. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-10-27 12:25.)