The ratings on Bank of East Asia Ltd. (BEA) reflect the bank's adequate profitability, sound asset quality, and satisfactory capitalization. These factors are offset by the bank's market share, which is small (though tenable) in comparison with the market shares of its dominant rivals in the Hong Kong banking sector. They are also offset by the bank's rapid expansion in mainland China, where it requires greater control over its asset quality. BEA is the fourth-largest domestically incorporated bank in Hong Kong, a market position that is satisfactory. However, the bank's market shares are relatively small compared with the shares of the dominant banks in the system. At the end of 2003, it had a market share of 5.1% in terms
