Hong Kong bank stocks,led by strong profitability,have been outperformingregional peers for five years.Large HK banks,aided by cost control,earn 17-18%returns on CET1 capital,even amid low interest rates and a high capital base.With rates rising,we expect further profitability gains.
20170810-MORGAN_STANLEY-HONG_KONG_FINANCIALS:PRIMER,WHY_ARE_THE_LARGE_HONG_KON.pdf
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