Standard Chartered Seen Dented due to Slower China Recovery — Market Talk
WORLD, Sept. 4 – A more balanced approach to Standard Chartered is warranted in the near term given the stresses in the Chinese real-estate sector, Keefe, Bruyette & Woods says in a note.
“It is now clear that elements of Chinese recovery are more fragile than might have been expected,” analysts Perlie Mong and Edward Firth write, noting that peer HSBC has limited direct exposure, but that a slower recovery in the country would likely reduce their Asia growth prospects.
KBW remains confident on StanChart’s medium-term outlook but cuts the stock to underperform from market perform citing share price outperformance against HSBC, higher exposure to Asia and emerging markets, risks to underlying profitability given higher reliance on markets trading income and higher interest rate sensitivity, Market Talk by Dow Jones News Wires learnt.
