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G Sachs: PBOC, HKMA Launch 11 Financial Connectivity Measures Structurally Positive for HK Banks
2026-07-09 16:59:21
On July 7, the People's Bank of China (PBOC), together with the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), announced 11 new measures to deepen financial cooperation between Hong Kong and mainland China, Goldman Sachs published a research report mentioning.

Six of the measures focus on supporting Hong Kong's fixed income and currency (FIC) markets, while the remaining five aim to further develop Hong Kong's offshore RMB business, including increasing the total quota of RMB business funding arrangements from RMB200 billion to RMB500 billion. The broker believed the measures will bring a structurally positive impact to Hong Kong banks overall and support growth in RMB-related balance sheets.

Goldman Sachs noted that BOC HONG KONG (02388.HK), as Hong Kong's only RMB clearing bank, was anticipated to become the key short-term beneficiary. The measures will support growth in RMB clearing and settlement activities and provide upside for fee income at BOC HONG KONG.

The broker maintained Buy on BOC HONG KONG, STANCHART (02888.HK) and HSBC HOLDINGS (00005.HK), while assigning a Sell rating to BANK OF E ASIA (00023.HK).
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