Contents

Valuation Summary 3
Hong Kong Banks – Valuation Abstract 3
Hong Kong Banks – Performance Ratio 4
Banks and Property Reflation 5
Rmb Trade Settlement 6
Interim results likely mixed 8
Bank of East Asia (0023.HK) 12
Sell: Stock Looks Expensive, Sub-debt Revaluation Risk xx
BEA – Financial Summary 16
BOC Hong Kong (2388.HK) 18
Upgrade to Buy: Well Positioned, Top Sector Pick 22
BOCHK – Financial Summary 23
Hang Seng Bank (0011.HK) 25
Sell: Rich Valuations, Low Beta 27
HSB – Financial Summary 28
Dah Sing Banking (2356.HK) 30
Buy: Attractive Valuations with Stabilized Asset Quality 36
DSB – Financial Summary 42
Dah Sing Financial (0440.HK) 44
Upgrade to Buy on Improved Investment Income/ Bank's
Earnings 50
DSF – Financial Summary 51
Industrial and Commercial Bank of China (Asia)
(0349.HK) 53
Maintain Hold: Approaching Fair Value 57
ICBCA – Financial Summary 58
Wing Hang Bank (0302.HK) 60
Maintain Sell: Premium Valuations Unjustified 62
WHB – Financial Summary 65
Appendix A-1 67