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2009-5-22 09:37:00 a.m. HKT, XFNA
DJ MARKET TALK:Muted Impact On HK Bks From Any Sovereign Cut -DBS
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| 0912 [Dow Jones] DBS Vickers says HK banks would be unlikely to feel much impact if there were to be a sovereign ratings downgrade in U.S., UK (concerns about this have risen after S&P cut its UK outlook to negative last night, though no actual ratings downgrade looks imminent). Says all HK banks have de-risked government treasurys portfolio by holding very short-end government bonds; yields for these bond only had muted increase of 1-2 bps overnight. Also, HK banks very conservative towards investing in government treasurys, as they are well aware of financial situations of developed countries; adds it's well understood any downgrade of AAA credit ratings of U.K., U.S. governments would only come sometime in next few years. House overall keeps positive view on HK banking sector with Dah Sing Financial (0440.HK) remaining top pick, Hang Seng Bank (0011.HK), BOC HK (2388.HK) also rated Buy.(RLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
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(Delayed by 1 hour)
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