BOC HONG KONG Aids AIIB in Launching HKD4B Sustainable Development Bonds

The analyst rating from Huatai Securities for BOC HONG KONG remains a Buy, with the target price increased from HKD42.18 to HKD45.59. The rationale behind this rating is based on the company's operating income and profit growth, despite a marginal slowdown in growth rates. The report notes that the slowdown was primarily due to fluctuations in non-interest income and higher provisioning. The overall positive outlook and the increase in the target price suggest confidence in the company's future performance.

Morgan Stanley raised its earnings forecasts for BOC HONG KONG for 2025-2027 by 3%, 2%, and 2% respectively, due to several factors. The increase was driven by expectations of higher net interest income resulting from HIBOR, as well as strong anticipated performance in wealth and market-related fees, which would boost fee income. Additionally, improved cost discipline led to a reduction in cost forecasts for the same period. Despite these positive adjustments, Morgan Stanley maintained an "Underweight" rating and raised the target price from $33.4 to $35.7, indicating a cautious outlook on the stock.

The analyst rating for BOC Hong Kong (02388.HK) is a "Buy" based on several factors highlighted in the report by HSBC Global Research. The reasons for this rating include: 1. Positive 3Q25 Results: The bank posted positive results for the third quarter of 2025, indicating strong performance. 2. NIM Expansion: There was an expansion in the Net Interest Margin (NIM), which is a positive indicator for profitability. 3. Revenue Beat: The bank's revenue exceeded expectations, suggesting strong operational performance. 4. NPL Ratio Drop: A decrease in the Non-Performing Loan (NPL) ratio indicates improved asset quality. 5. Earnings Forecast Increase: The broker raised its earnings forecast for BOCHK by 2.9% for 2025 and 0.5% for 2026, reflecting optimism about future performance. 6. Target Price Increase: The target price was raised from HKD 44.5 to HKD 45.2, further supporting the positive outlook. Despite some concerns, such as higher-than-expected credit costs and a worsening CASA mix, the overall assessment remains favorable due to the positive trends in NIM and revenue.