This report does not constitute a rating action. Overview Key strengths Key risks Second-largest bank in Hong Kong, with a well-established franchise and extensive branch network Weaker parent credit profile potentially dilutes support from the Hong Kong government Strong capitalization and robust funding and liquidity cushion the bank against market weakness High exposure to property sector High systemic importance in Hong Kong and moderately high likelihood of government support Capitalization is a key rating strength for Bank of China (Hong Kong) Ltd. (BOCHK). We project the bank's risk-adjusted capital (RAC) ratio will remain in the 14%-15% range over 2026-2028, supported by solid earnings generation and lower risk charges for its mainland exposure amid China's improved economic resilience. Profitability will remain
