A valuation study targeting HSBC's stock price

Last year, I proposed on Zhihu that investors seeking stable returns should consider buying HSBC shares (‘If you had over one million RMB, how would you achieve an annual return of 6%?’ — Answer by Hu Gong, Zhihu https://www.zhihu.com/answer/1968790215670896534). As of now, HSBC’s share price has risen to HK$135—making it timely to reassess its valuation. In brief, HSBC’s current forward P/E ratio stands at 11.12, and its P/B ratio at 1.68. By comparison: Standard Chartered’s forward P/E is 10.23 and P/B is 1.11; Bank of China (Hong Kong)’s forward P/E is 11.09 and P/B is 1.29. Relative to these peers, HSBC’s P/E ratio is moderate, while its P/B ratio is somewhat higher—yet still broadly acceptable. That said, the stock is trading near its highs, so investors should brace for broader market volatility. Frankly speaking, A-share markets truly lack large, stable blue-chip stocks like HSBC.

Is SK Hynix heading to the U.S. to seek a ‘fair valuation’?

On July 10, SK Hynix’s American Depositary Receipts (ADRs) officially began trading on U.S. exchanges. Here’s what’s intriguing: In terms of HBM dominance and DRAM market share, SK Hynix ($SKHY.US) consistently outperforms Micron—but its valuation (4.2x FY2027 P/E) has long lagged significantly behind Micron’s (6.6x FY2027 P/E). This discount isn’t rooted in fundamentals; rather, it reflects a so-called ‘Korean discount’—stemming from U.S. investors’ historical inability to access Korean equities and lingering skepticism toward Korean firms. So, is SK Hynix’s move to the U.S. merely about raising capital for capacity expansion? Dolphin Jun doesn’t think so. With ample cash on hand and currently riding a surge in earnings, the company deliberately bypassed low-cost debt financing and instead opted for equity issuance—relocating its shares to U.S. markets. The real strategic objective behind this move is a capital-market initiative aimed squarely at ‘valuation re-rating.’ In this article, Dolphin Jun traces the origins and implications of SK Hynix’s ADR listing, then places SK Hynix and Micron side-by-side on the same analytical table—to assess whether this ‘memory industry leader’ truly warrants a revised valuation. I. The Background and Rationale Behind SK Hynix’s U.S. ADR Listing 1.1 Specifics of the Issuance SK Hynix’s U.S. ADR offering involves 17.79 million ordinary shares, to be issued as 177.9 million ADSs—meaning each ADS represents one-tenth of an ordinary share. Typical ordinary-share-to-ADS ratios are 1:2 or 1:4; SK Hynix’s unusually high 1:10 ratio is designed specifically to lower the per-ADS price, thereby making the security more accessible and attractive to retail investors and smaller institutional players. Meanwhile, the newly issued shares represent approximately 2.5% of the company’s total outstanding shares (with major shareholder SK Square currently holding 20.5%). This allocation also carefully complies with South Korea’s Fair Trade Act, which mandates that major shareholders retain at least a 20% stake.

HSBC cuts target for Braskem stock to USD 1.50

Oct 15, 2026

HSBC slashed its price target for Braskem SA to USD 1.50 from USD 6.50, diverging from the average analyst consensus of USD 2.56. Braskem shares trade lower ahead of its upcoming earnings report on November 12, 2026.

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