China/HK First to Market

Top Stories: (1) HSBC & STAN (Katherine Lei): We expect HSBC and STAN to report revenue growth of 7%/8% y/y and clean PBT growth of 11%/7% y/y in 3Q26. Both banks note no observable impact on client flows or new client acquisition from China's tightening measures. Higher rates should provide NII tailwind, while volume growth and asset quality remain resilient. Both are positively exposed to Asia Wealth, capital markets activity and RMBI themes. Book compounding and capital distribution should support annual returns of 13%/14% for HSBC and STAN. We prefer STAN over HSBC given its stronger ROTE expansion and EPS growth over 2026-28E, less demanding valuation and lower downside risk to buybacks. (2) China Biotech (Yang Huang): Firmonertinib, an EGFR inhibitor out-licensed to ArriVent, failed in a global Ph3 trial (FURVENT) in first-line EGFR exon 20 insertion-mutant NSCLC, missing its PFS primary endpoint;