Daily Investment Strategy
Daily focus：Standard Chartered Group（2888）
Reported its first-quarter results for 2025, with operating income reaching USD 5.4 billion, a 7% increase at constant exchange rates, and a 12% increase excluding significant items. Net interest income and non-interest income both grew by 7%, with wealth management business income rising significantly by 28%, and global banking and global markets businesses also recording double-digit growth. Additionally, management did not update the 2025 guidance in response to recent changes in global trade relations. Overall, it was noted that net interest income growth remains challenging due to the interest rate environment and deposit rate transmission. The 2025 NII growth is expected to be conservative, but the overall credit portfolio remains resilient, and the 2025 fiscal year income is expected to be slightly below the 5-7% growth range.
The Fed Fund rate remain unchange
The S&P 500 index recorded a moderate rise on May 7, with market focus throughout the day on the Federal Open Market Committee (FOMC) meeting. As expected, the Federal Reserve announced that it would maintain the federal funds rate target range at 4.25% to 4.5%. The post-meeting statement emphasized that economic uncertainty has further increased, while also warning of rising risks of both unemployment and inflation. The committee reiterated its commitment to achieving maximum employment and a 2% inflation target. Chairman Powell stated at the press conference that the future policy direction is "uncertain," and the Federal Reserve will continue to closely monitor the latest economic data and various potential risks. He also pointed out that ongoing tariffs could lead to slower economic growth, higher long-term inflation, and job losses.
On Wednesday, the Hong Kong Stock Connect recorded a net outflow of HKD 79 million. China Construction Bank (939) recorded the highest net inflow of HKD 668 million, followed by Meituan (3690). Tencent Holdings (700) recorded the highest net outflow of HKD 2.78 billion, followed by Xiaomi Group (1810).
Cheung Cho Shing, Joseph is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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