Hong Kong banks slump after Morgan Stanley downgrades outlook


Riot police officers fire rubber bullets toward anti-government protesters during a demonstration in the Tseung Kwan O residential area in Kowloon, Hong Kong, China, October 7, 2019. REUTERS/Athit Perawongmetha

HONG KONG: Hong Kong banks declined after Morgan Stanley cut the sector’s outlook, saying the stocks will underperform as a slowing economy and falling rates hurt profitability.

Bank of East Asia Ltd. slumped 3.5% as of the noon-time break, while Hang Seng Bank Ltd. lost 3.4%. The MSCI Hong Kong Index dropped 1.3% after briefly dipping below the 14,000 point level for the first time since January.

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