HSBC, StanChart open higher after Friday's drop

HONG KONG (Reuters) - Shares of HSBC (HSBA.L) and Standard Chartered (STAN.L) bounced back on Monday morning in Hong Kong, after getting hit hard in the previous trading session on fears of exposure to Dubai.

Shares of HSBC (0005.HK) were up 3.5 percent and Standard Chartered (2888.HK) rose 4.6 percent, as investors appeared to view Friday's sell-off as overdone.

On Friday, shares of the banks fell around 7 percent as investors fretted that exposure to Dubai and its credit problems could further squeeze profits.

HSBC said during its first-half results in August that its loan exposure to the United Arab Emirates, which Dubai is a part of, was $15.9 billion, down from $17.5 billion at the end of 2008.

Standard Chartered's loan exposure to the UAE was $7.7 billion, according to the Emirates Banks Association.

(Reporting by Michael Flaherty; Editing by Jacqueline Wong)