Goldman Sachs: PBOC and HKMA's 11 Measures to Enhance Financial Interconnectivity Are Structurally Positive for Hong Kong Banks

Goldman Sachs published a research report noting that on July 7, the People’s Bank of China, together with the Hong Kong Monetary Authority and the Securities and Futures Commission, announced 11 new measures to deepen financial cooperation between Hong Kong and the Mainland. Six of these measures focus on supporting Hong Kong’s fixed income and money markets, while the remaining five aim to further develop Hong Kong’s offshore renminbi business, including increasing the total quota under the Renminbi Liquidity Facility from RMB 200 billion to RMB 500 billion. The firm believes these measures will have a positive structural impact on Hong Kong banks overall and support balance sheet growth related to renminbi assets and liabilities. Goldman Sachs noted that Bank of China (Hong Kong) (02388.HK), as the sole designated

AASTOCKSJul 9 16:59

Hong Kong Property Report: Centaline notes market rumors that mid-sized and small banks are increasing cash rebates on mortgage loans, with room for further hikes to enhance competitiveness.

Market sources report that some small and medium-sized banks have increased cash rebates on mortgage loans, offering rebates of up to 1.5% for mortgages of HK$3 million or more. Cally Chan, Deputy Chief Executive Officer of Centaline Mortgage Referral, noted that sustained strength in the property market has driven a corresponding rise in mortgage activity. According to the latest data from Centaline Mortgage Referral’s Research Department and the Land Registry, completed mortgage registrations for ready-built properties totaled 41,707 cases in the first half of this year, an increase of 12,822 cases or 44.4% compared to 28,885 cases during the same period last year—the highest first-half figure in nearly four years. Meanwhile, major banks have been actively competing for mortgage business since the beginning of the year, including by launching low-rate fixed-rate mortgage plans.

AASTOCKSJul 9 15:27

Hong Kong Property: Banks Boost Mortgage Cash Rebates to Attract Customers; HSBC and Bank of China Said to Offer Up to 1.4%

Property market transactions were brisk in the first half of the year, with residential prices rising approximately 10% year-to-date. Several major local banks have further increased their mortgage cash rebates to attract borrowers. Market sources indicate that at least six to seven banks are currently offering cash rebates of 1.4% or higher. Bank of China (Hong Kong) (02388.HK) and Hang Seng Bank have both raised their maximum rebates to 1.4%, up from the previous 1.2%, marking the highest among major banks; however, this rebate applies only to loans of HK$10 million or more. HSBC, the market leader, has also increased its rebate to 1.3%, applicable to loans of HK$20 million or above. Additionally, some smaller and medium-sized banks have raised their mortgage cash rebates to 1.5%, the highest rate available in Hong Kong.

AASTOCKSJul 9 12:49

HKMA: RMB business liquidity facility quota to increase to RMB 500 billion effective this Friday

HKMA Chief Executive Eddie Yue Wai-man stated that the total quota under the HKMA’s RMB liquidity facility will be increased from the current RMB 200 billion to RMB 500 billion this Friday (the 10th), with additional tenors of nine months, two years, and three years introduced to meet enterprises’ funding needs for asset allocation and direct investment. He noted that these measures aim to better support broader use of the RMB in the real economy. Since its launch last year, the RMB liquidity facility has received an enthusiastic response from the banking sector, with utilization steadily increasing. He added that the HKMA will study launching a seven-day offshore RMB liquidity tender mechanism.

AASTOCKSJul 7 15:08

Goldman Sachs Raises Earnings Estimates for Bank of East Asia (00023.HK), Maintains 'Sell' Rating

Goldman Sachs published a research report forecasting that Bank of East Asia (00023.HK) will report a net profit of HK$2.111 billion for the first half of 2026, representing a 7% year-over-year decline but a 123% increase compared to the second half of last year. Pre-provision operating profit is expected to rise by 14% year-over-year and improve by 8% compared to the second half of last year. The firm noted that the improvement relative to the second half of last year is primarily attributable to an improved outlook for the commercial real estate market, resulting in reduced property revaluation losses; normalization of income from associates following the recognition of losses from Guotong Trust; and continued strong growth in fees and other non-interest income. However, Goldman Sachs expects net interest income to remain weak due to declining interest rates.

AASTOCKSJul 7 14:24

Fitch expects asset quality pressures on Hong Kong banks’ commercial real estate exposures to ease in the second half of the year.

Fitch Ratings stated that asset quality pressures on Hong Kong banks stemming from their commercial real estate (CRE) exposure are expected to ease in the second half of the year, as most non-performing CRE loans from recent years have already been recognized as impaired. This supports an upgrade of the sector outlook for 2026 to 'neutral' from 'deteriorating' at mid-year. However, Fitch noted that the resolution of distressed local CRE loans will remain a gradual process, with prolonged collateral liquidation timelines likely keeping credit costs elevated for banks most exposed to this risk. CRE lending has been the primary driver behind the divergence in asset quality performance among Hong Kong banks in recent years. The stress first emerged in

AASTOCKSJul 3 11:49