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<Review> HK Stocks Retreat; HSBC HOLDINGS (00005.HK) Slumps 5% Post-Results; CKH HOLDINGS (00001.HK) Jumps 4%
Market focus was on escalating tensions between the US and Iran, with Hong Kong equities fluctuating lower. Middle East tensions intensified again, with the DJIA and Nasdaq falling...
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<Review> HK Stocks Retreat; HSBC HOLDINGS (00005.HK) Slumps 5% Post-Results; CKH HOLDINGS (00001.HK) Jumps 4%
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Market focus was on escalating tensions between the US and Iran, with Hong Kong equities fluctuating lower. Middle East tensions intensified again, with the DJIA and Nasdaq falling 1.1% and 0.2% overnight, respectively. The US and Iran exchanged fire in the Persian Gulf. US President Donald Trump warned that if Iran attacks US vessels attempting to reopen the Strait of Hormuz, Iran would be "wiped off the face of the earth." As of writing, the US 2-year Treasury yield fell to 3.938%, while the US 10-year Treasury yield declined to 4.428%. The US Dollar Index rose to 98.47. DJIA futures were up 140 points or 0.29%, and Nasdaq futures gained 153 points or 0.55%. A-shares were closed for the "May Day" holiday and will resume trading tomorrow (6th).

The HSI opened down 150 points and once dropped 405 points to a trough of 25,690 in early trading. Losses narrowed in the afternoon, with the index closing at 25,898, down 197 points or 0.8%. The HSCEI closed at 8,730, down 43 points or 0.5%. The HSTECH closed at 4,929, down 47 points or 0.9%. Southbound trading was suspended due to the "May Day" holiday. Total market turnover for the day amounted to HKD122.235 billion. Southbound trading will resume tomorrow (6th).

CATL (03750.HK)  +23.500 (+3.721%)    Short selling $595.16M; Ratio 15.641%   bucked the trend, rising 3.7% to close at HKD655. M Stanley upgraded CATL's H-shares rating to Overweight and raised its TP to HKD815. Among IPOs, medical device maker STAR SPORTS MED (01609.HK)  +116.500 (+118.274%)   closed at HKD215, 118.3% above its listing price of HKD98.5.

HSBC HOLDINGS Weak Post-Results; Provisions Above Expectations

Heavyweight HSBC HOLDINGS (00005.HK)  -7.400 (-5.160%)    Short selling $1.56B; Ratio 35.751%   announced its 1Q26 results at noon, with its share price turning weaker in the afternoon. It fell 5.2% to close at HKD136, with turnover of HKD4.364 billion. On a reported basis, profit before tax for the quarter was USD9.376 billion, down 1.1% YoY, compared with M Stanley and G Sachs forecasts for a 1.7% to 2% YoY decline. Reported profit after tax was USD7.394 billion, down 2.3% YoY. EPS was USD0.41, versus USD0.39 in the same period last year. Net profit was USD6.938 billion, up 0.1% YoY. Excluding notable items, profit before tax was USD10.055 billion, up 2.96% YoY. The board approved a first interim dividend for 2026 of USD0.10 per share, unchanged YoY and in line with this websites consensus forecast of USD0.10 per share from three brokers. The decision to restart share buybacks will depend on the groups regular quarterly considerations and processes.

During the quarter, expected credit losses were USD1.3 billion, up USD0.4 billion YoY. The increase mainly reflected USD0.4 billion related to second-lien securitization exposure tied to a fraud involving a UK financial sponsor in the corporate and institutional banking business, as well as an additional USD0.3 billion provision due to heightened uncertainty and a deteriorating economic outlook following the outbreak of conflict in the Middle East on February 28. The CET1 ratio was 14%, down 0.9 ppts from 4Q25.

UBS said in a report that HSBC HOLDINGS 1Q26 pre-provision operating profit and profit before tax were 1% and 2% below market expectations, respectively, as revenue growth was offset by costs and impairments. Excluding special items and a one-off gain of USD0.2 billion from property disposals, profit before tax was 2% below consensus. Provisions were 9% above market consensus, equivalent to 53 bps of loans. Total quarterly impairments were USD1.3 billion, including USD0.3 billion related to the Middle East conflict and USD0.4 billion linked to "fraud-related second-lien securitization exposure" involving a UK financial sponsor, speculated to be related to the same incident as Barclays. UBS said key focuses of the earnings call included net interest income, wealth management, and near-term profit risks, particularly Middle East energy shocks, which are especially important for Asia. On slide 17 of the presentation, the company provided energy stress test results, indicating that 2026 profit before tax could decline by a mid-to-high single-digit percentage.

Decliners Exceed 1,200; CKH HOLDINGS Supported

Market breadth weakened, with the ratio of advancers to decliners among main board stocks at 20 to 30 (previous session 33 to 18). A total of 1,262 stocks fell (down 2.1%). Among HSI constituents, 30 rose and 57 declined, with an advancers-to-decliners ratio of 33 to 63 (previous session 79 to 21). Short selling amounted to HKD29.084 billion, representing 28.824% of turnover of HKD100.903 billion in eligible securities (previous session 21.544%).

CKH HOLDINGS (00001.HK)  +2.700 (+4.135%)    Short selling $262.00M; Ratio 26.120%   rebounded 4.1% to close at HKD68, with turnover of HKD1.003 billion, after announcing the disposal of its entire 49% stake in VodafoneThree to realize nearly HKD45.5 billion.

CKH HOLDINGS announced that its wholly owned subsidiary, CK Hutchison Group Telecom Holdings Limited (CKHGT), agreed to sell its entire stake in VodafoneThree, its UK telecommunications business. Vodafone Group Plc holds 51% of the business, while CKHGT holds 49%. The transaction is subject to regulatory approval. The deal enables the group to monetize its investment at an attractive valuation. Through cancellation of its stake in VodafoneThree, the group will receive consideration of GBP4.3 billion (approximately HKD45.494 billion). Based on currently available information, the group expects to recognize a gain of approximately HKD4.7 billion. (wl/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-05 16:25.)



This article was automatically translated by AI, the Chinese 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.

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