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| HSI1 | 23,393.32 | +98.90 | 204.84B |
| HSCEI1 | 7,906.11 | +43.89 | 74.19B |
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2026-11-02 11:10:16 Hong Kong's utilities have demonstrated visible resilience and defensiveness during the recent market correction, HSBC Global Investment Research said in a research report. The sector has amassed gains of 5% since 2H26, vs an about 9% losses in the HSI over the same period. The broker emphasized that the market is increasingly differentiating companies based on fundamentals, with stock-specific fundamental factors driving share price performance. Following the disposal of key assets, CKI HOLDINGS (01038.HK) and POWER ASSETS (00006.HK) significantly strengthened their balance sheets, holding net cash equivalent to about 20% and 33% of their respective market cap. This was expected to support earnings through interest income in a rising rate environment. Although CLP HOLDINGS (00002.HK) remains relatively affected by rising interest rates, development in the Northern Metropolis was anticipated to bring long-term capex and earnings growth, as well as room for higher shareholder returns. HKELECTRIC-SS (02638.HK), meanwhile, was forecast to remain subdued during the rising rate cycle. The broker maintained its stock preference order for utilities as CKI HOLDINGS > POWER ASSETS > CLP HOLDINGS > HKELECTRIC-SS. It maintained Buy ratings on CKI HOLDINGS, POWER ASSETS and CLP HOLDINGS, with TPs unchanged at HKD80, HKD70 and HKD88 respectively. It also maintained a Hold rating on HKELECTRIC-SS, with TP unchanged at HKD6.9. ~ AASTOCKS Financial News Website: www.aastocks.com | |