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

HBAP's outperformance compared to the rest of the group justifies the bank's higher stand-alone credit profile (SACP). The bank's SACP of 'a+' is higher than the group SACP of 'a'. HBAP is consistently the major profit contributor to its ultimate parent, HSBC Holdings PLC, and outperforms the rest of the group. HSBC Holdings is planning to rebalance its capital away from low-return businesses into higher growth, higher return opportunities, principally in HBAP, over the medium term. The stable outlook on HBAP reflects our expectation that the bank will maintain its business and financial strength over the next two years. Despite a difficult operating environment, the bank has demonstrated resilience amid COVID-19 and maintained its dominant market position, solid capitalization, and

...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 intends to invest US$6 billion in Asia-Pacific over the next five years, with a focus on boosting its digital capability, and move more capital to the region in the medium term. The areas of investment are wealth and personal banking, commercial banking, and global banking and markets. We anticipate that HBAP will maintain its leading position in Hong Kong, established franchises across Asia-Pacific, and access to the global network of the HSBC group. Good growth in fee income will offset some of the negative revenue impact from prevailing low interest rates. We expect HBAP's revenue will continue to be overshadowed by low interest rates in 2021. Resumption of loan growth and...

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