Investors anticipate sale of Chong Hing Bank

Hong Kong’s tepid growth is forcing its banks to rely ever more on China for profits. That may be the easy option — but they should look further afield.

Hong Kong-based Chong Hing Bank launches rights issue as its parent seeks to turn it into a major financial services provider in Guangdong province.

The Hong Kong bank's Additional Tier 1 bond was 16x oversubscribed, but credit risk may rise due to recent takeover.

Wing Hang Bank is the second of four family controlled lenders to attract a takeover approach. M&A bankers and analysts calculate the likelihood of talk turning into deals.

Hidili prices its five-year bond with an 8.625% coupon after the deal is four times subscribed. Another deal that priced late last week was Ching Hong Bank which raised $225 million from a lower tier-2 transaction.

Yue Xiu Group’s potential purchase price for Chong Hing Bank reflects the economic slowdown in mainland China and competition in Hong Kong.