Morgan Stanley says HSBC is a 'top pick' despite the bank's shareholder troubles

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Morgan Stanley says HSBC is a 'top pick' despite the bank's shareholder troubles
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HSBC, the largest bank in Europe, faces pressure from its biggest shareholder to restructure its business. But Morgan Stanley is sticking to its bullish stance.

Trouble is brewing at

to spin off its Asia business, saying on Tuesday that 's fundamentals. "Improving China GDP growth post-reopening, plus sustained higher U.S. rates, means investors should focus on returning up to 12% of its market cap in the next 12 months to shareholders. Valuation looks compelling," the bank added. It noted that though

to deliver "accelerating" capital returns, with 50% of 202 earnings paid out in dividends and share buybacks amounting to $3 billion in 2023. "Over the next 12 months,

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