ASIA PACIFIC EQUITY RESEARCH: ASIA FIRST TO MARKET

Research evidence excerpt

ASIA PACIFIC EQUITY RESEARCH: ASIA FIRST TO MARKET

James R. Sullivan, CFA AC Asia Pacific Equity Research

(65) 6882-2374 17 June 2026 J P M O R G A N

james.r.sullivan@jpmorgan.com

NIM tailwind as FX deposit spreads widen, while for Hong Kong banks, the potential headwind to wealth

management tied to Mainland Chinese Visitor (MCV) business is well-flagged (link), but the tailwind from

CIB activity appears underappreciated. In particular, we expect STAN and HSBC to benefit from the

relaxation of multi-national company’s cash management rules, greater flexibility around onshore

corporates’ overseas lending, expanded regulated channels for inbound/outbound financial investments,

and continued progress in RMB internationalization.

Hong Kong Property, Hong Kong (Karl Chan)

Takeaways from legal expert call on cross-border home purchase

The State Council’s Regulations on Outbound Direct Investment (“Document 837”) (report) have triggered

investors’ concerns about the eligibility of Mainland Chinese to purchase property in Hong Kong. To address

the legal implications, we hosted an expert call with a Beijing-based lawyer.

Asia Energy (Parsley Ong)

Middle East escalation tracker: China PE utilizations recover in June, but apparent oil product

demand continues to worsen

As the market debates the speed of Hormuz reopening, a common question is the extent to which China will

turn from shock absorber back to major buyer and oil product exporter. Crude oil imports fell by an

unprecedented 4.8 mbd between Feb to May (COVID: 4mbd drop in 2H20), and vessel tracking data

indicates crude oil imports remaining weak at ~8mbd through July. We view 3mbd of China’s crude oil

demand destruction as temporary and anticipate a gradual recovery in imports from August as chemical-