JPMorgan Raises BOC Hong Kong Target 23% to HK$53.3, Upgrades to Overweight

According to JPMorgan Chase, the bank raised its target price for Bank of China Hong Kong (02388) by 23% to HK$53.3 from HK$43.3 today (July 24), upgrading its rating from Neutral to Overweight. The stock has outperformed the Hang Seng Index by 29% year-to-date, though JPMorgan expects an additional 8% total shareholder return and further outperformance over the next 6–12 months.

JPMorgan expects credit costs to decline in 2026 and beyond, supported by improving asset quality in Hong Kong's commercial real estate portfolio with no new material impaired loans forming recently. The bank anticipates shareholder return measures—such as buybacks or special dividends providing an additional 1–1.5% return alongside normal dividends—may serve as a price catalyst.