Largest bank in Hong Kong with presence in 19 markets in Asia and access to a diverse global network. High systemic importance due to its market leading position in Hong Kong and likelihood of government support. The bank has exhibited very strong resilience during market stress in past cycles thanks to its solid capital, and robust funding and liquidity from a strong deposit base. Trade tensions, a slowing China economy, and continuous protests in Hong Kong dampen the economic outlooks in its main markets. We see asset quality pressures rising, albeit from a very low base. Profitability is likely to be affected by muted business activity, slowing loan demand and NIM compression in a declining interest rate environment. Exposure to
