Performance of China-Owned Banks in Hong Kong
This paper reports results on the performance of mainland China-owned banks operating in Hong Kong and compares them Hong Kong (SAR) owned banks and Foreign owned banks. In general, the test model performs well under diagnostic tests on variables such as net interest margin, non-interest expense, im...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2012-09-01
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| Series: | The International Journal of Banking and Finance |
| Subjects: | |
| Online Access: | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8459 |
| _version_ | 1797958170105085952 |
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| author | Xiaoxi Zhang Kevin Daly |
| author_facet | Xiaoxi Zhang Kevin Daly |
| author_sort | Xiaoxi Zhang |
| collection | DOAJ |
| description | This paper reports results on the performance of mainland China-owned banks operating in Hong Kong and compares them Hong Kong (SAR) owned banks and Foreign owned banks. In general, the test model performs well under diagnostic tests on variables such as net interest margin, non-interest expense, impaired loans ratio, equity multiplier and ownership structures. Profitability, as measured by return on assets and return on equity for Chinese owned banks increased over the period 2004-2011. Chinese owned banks recorded increased performance in terms of net interest margin and equity multiplier but decreased with respect to non-interest expense and impaired loans ratio. Banks having a license also appears to be a major contributor to banks profitability across HKSAR. Compared to Hong Kong based foreign banks and local Hong Kong banks, we found that in general the mainland China banks tend to perform poorly across a number of key banking performance indicators.
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| first_indexed | 2024-04-11T00:15:08Z |
| format | Article |
| id | doaj.art-3418b77d45b74c5cbefde47bcf1c503f |
| institution | Directory Open Access Journal |
| issn | 2811-3799 2590-423X |
| language | English |
| last_indexed | 2024-04-11T00:15:08Z |
| publishDate | 2012-09-01 |
| publisher | Universiti Utara Malaysia |
| record_format | Article |
| series | The International Journal of Banking and Finance |
| spelling | doaj.art-3418b77d45b74c5cbefde47bcf1c503f2023-01-09T03:08:16ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2012-09-0193Performance of China-Owned Banks in Hong KongXiaoxi Zhang0Kevin Daly1University of Western Sydney, AustraliaUniversity of Western Sydney, AustraliaThis paper reports results on the performance of mainland China-owned banks operating in Hong Kong and compares them Hong Kong (SAR) owned banks and Foreign owned banks. In general, the test model performs well under diagnostic tests on variables such as net interest margin, non-interest expense, impaired loans ratio, equity multiplier and ownership structures. Profitability, as measured by return on assets and return on equity for Chinese owned banks increased over the period 2004-2011. Chinese owned banks recorded increased performance in terms of net interest margin and equity multiplier but decreased with respect to non-interest expense and impaired loans ratio. Banks having a license also appears to be a major contributor to banks profitability across HKSAR. Compared to Hong Kong based foreign banks and local Hong Kong banks, we found that in general the mainland China banks tend to perform poorly across a number of key banking performance indicators. https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8459Bank performanceChina’s financial outward investmentChinese banks in Hong Kong |
| spellingShingle | Xiaoxi Zhang Kevin Daly Performance of China-Owned Banks in Hong Kong The International Journal of Banking and Finance Bank performance China’s financial outward investment Chinese banks in Hong Kong |
| title | Performance of China-Owned Banks in Hong Kong |
| title_full | Performance of China-Owned Banks in Hong Kong |
| title_fullStr | Performance of China-Owned Banks in Hong Kong |
| title_full_unstemmed | Performance of China-Owned Banks in Hong Kong |
| title_short | Performance of China-Owned Banks in Hong Kong |
| title_sort | performance of china owned banks in hong kong |
| topic | Bank performance China’s financial outward investment Chinese banks in Hong Kong |
| url | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8459 |
| work_keys_str_mv | AT xiaoxizhang performanceofchinaownedbanksinhongkong AT kevindaly performanceofchinaownedbanksinhongkong |