G Sachs: PBOC, HKMA Launch 11 Financial Connectivity Measures Structurally Positive for HK Banks

G Sachs published a research report stating that on Jul 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 mainland China. Six of the measures focus on supporting Hong Kong's fixed income and currency 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 believes the measures will bring a structurally positive impact to Hong Kong banks overall and support growth in RMB-related balance sheets.

G Sachs noted that BOC HONG KONG (02388.HK) -0.080 (-0.176%) Short selling $234.73M; Ratio 36.172% , as Hong Kong's only RMB clearing bank, is expected to become the main short-term beneficiary. The measures will support growth in RMB clearing and settlement activities and provide upside potential for fee income at BOC HONG KONG. In addition, G Sachs believes the series of new measures will also help ease investor concerns over recent cross-border regulatory developments in mainland China, reflecting policymakers' continued commitment to developing Hong Kong as a leading offshore RMB hub.

G Sachs maintained Buy ratings on BOC HONG KONG (02388.HK) -0.080 (-0.176%) Short selling $234.73M; Ratio 36.172% , STANCHART (02888.HK) +0.400 (+0.181%) Short selling $10.15M; Ratio 7.184% and HSBC HOLDINGS (00005.HK) +0.400 (+0.263%) Short selling $275.54M; Ratio 20.308% , while assigning a Sell rating to BANK OF E ASIA (00023.HK) -0.040 (-0.307%) Short selling $895.97K; Ratio 9.395% . (gc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-09 16:25.)