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    Kunpeng Ma • China Securities

    Kunpeng Ma's questions to HSBC Holdings PLC (HSBC) leadership

    Kunpeng Ma's questions to HSBC Holdings PLC (HSBC) leadership • Q2 2025

    Question

    Kunpeng Ma of China Securities questioned the timing of the BOCOM impairment, suggesting it coincided with other negative news, and asked for the longer-term outlook on Hong Kong Commercial Real Estate (CRE) and the potential for further credit cost increases.

    Answer

    Group CEO Georges Elhedery stated the BOCOM impairment timing was purely coincidental and has no CET1 or distribution impact. On Hong Kong CRE, he noted stabilization in residential but continued pressure in the office sector, though he remains confident in the medium-to-long term. Group CFO Pam Kaur added the BOCOM impairment is a routine quarterly accounting process and the new ECL guidance of ~40 bps captures the current view of Hong Kong CRE risk.

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    Kunpeng Ma's questions to HSBC Holdings PLC (HSBC) leadership • Q2 2025

    Question

    Kunpeng Ma of China Securities questioned the timing of the Bank of Communications (BOCOM) value-in-use (VIU) impairment, suggesting it coincided with other negative news. He also asked for HSBC's longer-term outlook on Hong Kong Commercial Real Estate (CRE) and whether pressures could lead to further increases in ECL assumptions.

    Answer

    Group CEO Georges Elhedery asserted that the BOCOM impairment timing was purely coincidental to a routine accounting process and has no impact on CET1 capital or distributions. On Hong Kong CRE, he noted stabilization in residential but ongoing oversupply in office space, though the long-term outlook remains constructive. Group CFO Pam Kaur added that the updated ECL guidance of around 40 basis points for 2025 fully captures the perceived risks in the Hong Kong CRE portfolio.

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    Kunpeng Ma's questions to HSBC Holdings PLC (HSBC) leadership • Q1 2025

    Question

    Kunpeng Ma asked for a comparison between the trade downside scenario and the ECL test assumptions, questioning if the revenue impact was for one year or ongoing. He also requested an update on the latest trends in Hong Kong Commercial Real Estate (CRE).

    Answer

    Manveen Kaur, an executive, clarified that the revenue and ECL scenarios share the same starting point and do not model extreme downsides like a double-digit GDP contraction, and based on this, the bank reaffirms its RoTE guidance. Regarding Hong Kong CRE, she described the quarter as quiet, with one specific credit downgrade in the performing book but no significant ECL impact.

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