Merrill Lynch has reduced its 1997 forecasts for HSBC Holdings because of the slower growth seen in the region and the tighter spreads emerging between the prime and market rates in Hong Kong. Merrill cut its full-year 1997 pre-tax profit estimate for the group 0.5 per cent to GBP5.22 billion (about HK$64.36 billion) and reduced its 1998 estimate 1.5 per cent to GBP5.83 billion. The current rating contained virtually nothing for long-term growth prospects, Merrill said. It lowered 1998 GDP forecasts for Southeast Asia by up to 3 per cent but dropped the Hong Kong estimate by only 1 per cent.
