BOCHK Holdings (2388 HK): Buy: Relative resilience amid broader sell down

Asian banks have faced a material sell down month-to-date, but we see relative resilience in BOCHK. Higher rates present upside potential to NII; bond mark-to-market losses should not affect the shareholder return plan. Maintain Buy and TP of HKD58.00. Hong Kong banks, Singapore banks, and international banks listed in Hong Kong have declined 5-10% month-to-date, reflecting concerns over bond mark-to-market losses, negative spillover effects on capital market sentiment, rising asset quality risks and softer loan demand. We revisit our core investment thesis and believe BOCHK should demonstrate greater resilience than its regional peers: (1) upside risk to NII and NIM, supported by a high CASA deposit mix of 53.8% in 1H26; (2) weakness in wealth has limited impact, as wealth-related revenue contributes only 7-8% of total revenue; (3) leadership in the offshore RMB business, with RMB loans in Hong Kong rising 15% in the first seven months of 2026;