Hongkong and Shanghai Banking Corp. Ltd. (The) And HSBC Bank (China) Co. Ltd.

We anticipate HBAP will maintain its leading position in Hong Kong, established franchises across Asia-Pacific, and access to the global network of the HSBC group. However, HBAP's fee income is likely to be a drag, especially in 2022, due to the COVID-19-related lockdown and weakness in the wealth management sector amid volatility in the global financial market. The stable outlook on HBAP reflects our expectation that the bank will maintain its business and financial strength over the next two years. Despite difficult operating conditions amid the COVID1-9 pandemic, the bank has demonstrated resilience and maintained its dominant market position, solid capitalization, and strong funding and liquidity profile. We also believe HBAP will continue to benefit from potential extraordinary support from

...The Hongkong and Shanghai Banking Corp. Ltd. (HBAP) will remain the growth engine of the group. We see HBAP as pivotal to the HSBC group's growth given the expanding population of affluent clients and trade flow in Asia-Pacific. HBAP is likely to remain the main revenue and profit contributor to the group. The group is on track for its US$6 billion investment in Asia-Pacific between 2021-2025, with a focus on boosting its digital capability, and move more capital to the region. The areas of investment are wealth and personal banking, commercial banking, and global banking and markets. We anticipate HBAP will maintain its leading position in Hong Kong, established franchises across Asia-Pacific, and access to the global network of the HSBC group....

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