HSBC dividend seen at 22 US cents in 2021

Morgan Stanley expects HSBC (0005) could pay a dividend of as much as 22 US cents per share next year, while Standard Chartered's (2888) dividend payment could reach 21 US cents.

If the Bank of England allows the banks to resume dividend distribution, it is expected that of the two major British banks HSBC will have dividend yields of 2.77 percent this year and 4.07 percent next year, the report from Morgan Stanley noted. As for Standard Chartered, the dividend yields are expected to be 2.68 percent this year and 3.33 percent next year.

According to regulations of the Prudential Regulation Authority, which is under the BOE, HSBC can pay a maximum dividend of up to US$3.045 billion (HK$23.75 billion) this year, equivalent to 15 US cents per share while Standard Chartered could pay up to US$540 million, equivalent to 17 US cents per share, Morgan Stanley said.

Therefore, it expects HSBC to pay dividend of US$1.512 billion and Standard Chartered a dividend of US$228 million this year.

Meanwhile, China's medical information technology industry will usher in opportunities in the next few years as it is expected to receive policy support, which may drive the performance of relevant stocks, said DBS.

The bank expected the industry growth rate to accelerate from 29 percent in 2019 to 41 percent in 2023.