JPM Not See Apparent Synergies between HSBC and SVB UK; Bank of China shares will rise
The broker expressed that there is no apparent synergies between HSBC and SVB UK, and the acquisition could be viewed as an act of national service to curb relevant liquidity risks for smaller U.K. banks.
As such, the takeover was considered as neutral for HSBC but negative for SVB's peers and subsidiaries.
For Asian banks, JPMorgan predicted that the market will likely remain tumultuous and smaller banks with a weak deposit franchise and high reliance on USD wholesale funding will be particularly vulnerable.
Chinese state-owned banks, on the other hand, were forecast to outshine amid market volatility.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more