[ET Net News Agency, 16 October 2019] Goldman Sachs lowered its target price for Hang
Seng Bank (HSB)(00011) to HK$196 from HK$200 and maintained its "neutral" rating.
The research house noted that HSB has the highest historical NIM beta to HIBOR (which
follows Fed's rate cut). However, HSB also has a higher capital ratio and ROE compared to
BEA (00023) and DSBG (02356), and hence, higher ability and willingness to lend now.
Goldman used P/E now versus historic median and implied COE (cost of equity) to measure
valuation attractiveness. BOCHK (02388), BEA and DSBG show better here than HSB. (KL)