Moody’s changes Hong Kong banks to negative

Moody's Investors Service has today revised the outlook on three Hong Kong banks: Hongkong and Shanghai Banking Corp. Ltd., Hang Seng Bank Ltd. and Dah Sing Bank, Ltd. to negative from stable.

The action reflects the agency’s expectations of a more challenging operating environment for banks in Hong Kong.

On March 12, Moody's changed the outlook on Hong Kong government's Aa1 sovereign rating to negative from stable. The revision of the sovereign outlook reflects the agency’s concern that Hong Kong's increasing economic and financial linkages with China (Aa3, negative) give rise to potential negative spillovers from China and ultimately weaker growth.

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