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Research evidence excerpt

JOIN: UK State of Play Webcast Riskier Road Ahead Friday, 15 May 2026 | 10:00 UK / 13:00 UAE / 17:00 HK

commendation structure, as described below, only for its longer-term investment opportunities.

HSBC believes an investor's decision to buy or sell a bond should depend on individual circumstances such as the investor's

existing holdings and other considerations. Different securities firms use a variety of terms as well as different systems to describe

their recommendations. Investors should carefully read the definitions of the recommendations used in each research report. In

addition, because research reports contain more complete information concerning the analysts' views, investors should carefully

read the entire research report and should not infer its contents from the recommendation. In any case, recommendations should

not be used or relied on in isolation as investment advice.

HSBC Global Research is not and does not hold itself out to be a Credit Rating Agency as defined under the Hong Kong Securities

and Futures Ordinance.

Definitions for fundamental credit and covered bond recommendations

Overweight: For corporate credit, the issuer’s fundamental credit profile is expected to improve within the next six months. For

covered bonds, the bonds issued in this country are expected to outperform those of the other countries in our coverage over the

next six months.

Neutral: For corporate credit, the issuer’s fundamental credit profile is expected to remain stable for up to six months. For covered

bonds, the bonds issued in this country are expected to perform in line with those of the other countries in our coverage over the

Underweight: For corporate credit, the issuer’s fundamental credit profile is expected to deteriorate within the next six months.