, Hong Kong
Bank of China Hong Kong building (Source: Meisam, Wikimedia Commons).

Bank of China Hong Kong poised to benefit from GBA: analyst

A possible rate hike in March will also positively affect the bank.

Bank of China’s Hong Kong franchise (BOCHK) is expected to be a prime beneficiary of the growth of cross-border financial services in the Greater Bay Area (GBA), according to a study by OCBC Investment Research (IR).

The potential border reopening with Mainland China later this year would be another positive catalyst in driving loan growth and recovering of cross border related fee income, the study added. 

A possible rate hike in March should benefit Hong Kong banks, with BOCHK likely to be amongst the key beneficiaries. 

“Tailwinds from higher rates and its unique position to benefit from the GBA Wealth Connect should support the long-term development,” OCBC IR added.

BOCHK also boasts of a stable net interest margin (NIM). Management guidance for the financial year 2021 NIM is around 1.1%. Fee income also grew 16% in the first nine months of 2021, on the back of a 7% growth from investment-related fee income. During the fourth quarter, the management saw mortgage loan growth but not much growth within corporate loans.

Asset quality also remains stable, with management guiding for credit costs to be lower in 2021 than in 2020.

Follow the links for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Unemployment rate rises to 5.4% from February to April
The total number of unemployed people stands at 206,100.   The unemployment rate rose by 0.4 percentage points to 5.4%  from February to April, when compared to the January to March period.    Based on the data from the Census & Statistics Department (C&SD), the total number of unemployed people from February to April was 206,100, an increase of 17,600 from the preceding three-month period.   Meanwhile, the number of unemployed rose by around 25,000 to 142,000, translating to a rate of 3.8%.   With the increase in the number of jobless and underemployed individuals, total employment dropped to 3,559,200, whilst the labour force fell to 3,765,300.   The deterioration of Hong Kong’s labour market however should see an improvement in the coming months, according to Secretary for Labour & Welfare, Dr Law Chi-kwong.   The receding local epidemic situation and progressive relaxation of social distancing measures, the new round of Consumption Voucher Scheme, and Other relief measures including the 2022 Employment Support Scheme should help drive improvement in the employment sentiment, said the C&SD.  
Economy