HK banks to gain on IPO surge and stabilising property market

IPO applications in Hong Kong surged 61% in April compared to March.

Hong Kong banks are set to benefit from higher rates, a robust initial public offering (IPO) pipeline, and stabilising of the local housing market, said Jefferies Equity Research.

Hong Kong rates, both 1-month and 3-month, have edged up since April 2026 thanks to a robust IPO pipeline and the upcoming dividend season, it said.

There are 470 active IPO applications in the Hong Kong Stock Exchange (HKEX) as of April, up 61% compared to March, Jefferies said.

“Together with further stabilizing of local housing market, we believe Q1 [net interest margin (NIM)] and loan growth trend are likely to stay favorable for HK banks,” Jefferies wrote in a 19 May report about Bank of China Hong Kong (BOCHK).

BOCHK’s loan exposure in the ASEAN market was noted by Jefferies. Whilst it only contributes 3.2% to the bank’s current loan book, growth has been strong over the past five years, with operating profit registering a compound annual growth rate (CAGR) of 12%, according to BOCHK’s Corporate Day.

Deposits of its ASEAN operations have also logged a CAGR of 9%, outpacing the company level, Jefferies said.

BOCHK also highlighted its competitive edge in serving Chinese companies going global, such as reducing account opening lead time to 20 to 30 days from the typical 2 to 3 months.

BOCHK has been number one in market share for syndicated loans in Macau/ Hong Kong for 21 years, Jefferies noted, based on BOCHK’s Corporate Day.