The drop in banks’ share prices “is a reflection of movements in the pound, which is, in turn, a reflection of policy announcements made on Friday,” Morningstar Inc. senior equity analyst Michael Wu said by phone.
UK’s “budget will only add to inflation from where it already is, and adds to multiple risks of a recession”.
HSBC and StanChart are among four Hong Kong blue-chip companies with heavy UK and European exposure. According to Morningstar, HSBC derived 41% of its revenue from Europe in 2021.
