Hong Kong Banks Stand to Gain From Economic Revival Story -- Market Talk

Dow Jones06-09 18:46

1046 GMT - Hong Kong banks could ride the city's economic recovery, further supporting their share-price performance, DBS Group Research says in a note. With the city's economic expansion accelerating to 5.9% on year in 1Q, "we see high potential upside risks to the government's full-year growth target," analysts Manyi Lu and Ken Shih write. They also expect stronger-than-expected loan growth to drive banks' net interest incomes higher, noting that Hong Kong loans grew 4.7% in 1Q, the fastest pace in the past four years. The analysts raise their 2026 loan-growth assumption for BOC Hong Kong to 4.5%, higher than the consensus estimate of 3.1%. They also switch their top pick to BOC Hong Kong from HSBC, viewing it as a more direct beneficiary of the Hong Kong revival story. (farah.elias@wsj.com)

(END) Dow Jones Newswires

June 09, 2026 06:46 ET (10:46 GMT)

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