Hong Kong shares of Chinese banks surge amid hunt for yield – FT

Hong Kong shares of Chinese banks surge amid hunt for yield – FT

Hong Kong shares of Chinese banks have experienced a surge in the past few days, driven by investors seeking higher yields in a low-interest-rate environment. This trend is evident in the performance of Postal Savings Bank of China Co Ltd (PSBC), which traded at HK$4.70, a significant 12.80% drop from its 52-week high of HK$5.39 set on October 7, 2024 [3].

The demand for Chinese bank shares in Hong Kong is fueled by several factors. Firstly, the hunt for yield has led investors to seek out higher returns in a market where traditional fixed-income investments offer lower yields. Secondly, the Chinese banking sector has shown resilience despite economic headwinds, with many banks reporting strong financial performance. Lastly, the listing of FWD Group on the Hong Kong Stock Exchange (HKEX) on July 7, 2025, has added to the overall optimism in the market [2].

FWD Group, a pan-Asian insurer backed by billionaire Richard Li, made its trading debut on the HKEX. The shares opened at HK$38, matching the IPO offer price, and closed at HK$38.40, valuing the company at HK$48.3 billion. The insurer raised HK$3.5 billion through the sale of 91.34 million shares priced at HK$38 each, utilizing the net proceeds to bolster its capital position and financial flexibility [2].

The successful listing of FWD Group represents a significant milestone for the company, which had attempted to go public previously in both New York and Hong Kong. The delays in regulatory approval and volatile market conditions had previously hindered these attempts [2].

In conclusion, the surge in Hong Kong shares of Chinese banks reflects a broader trend of investors seeking higher yields in a low-interest-rate environment. The successful IPO of FWD Group has further bolstered investor confidence in the market. As the hunt for yield continues, investors will likely keep a close eye on the performance of Chinese banks and other high-yield assets.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3T401A:0-fwd-group-shares-rise-1-in-hong-kong-trading-debut/
[2] https://finance.yahoo.com/news/fwd-group-debuts-hong-kong-142454776.html
[3] https://markets.ft.com/data/equities/tearsheet/summary?s=1658:HKG