CICC A research report noted that Hong Kong bank stocks have outperformed over the past year, primarily due to a better-than-expected increase in return on tangible equity (ROTE).Looking ahead to 2026, CICC expects the return on equity (ROE) of listed Hong Kong banks to remain at a relatively high level of 10% to 17%, with dividend and buyback yields still around 7%, indicating investment value. CICC It is also expected that the market will remain in a rate-cutting cycle this year. The Federal Reserve’s December dot plot indicates one to two rate cuts in 2026 and zero to one in 2027, with rates subsequently reaching 3%.Against this backdrop, Hong Kong banks’ net interest margins are expected to continue narrowing. However, given the expected pace of rate cuts and modest asset growth, the decline in net interest income is likely to remain in the low single digits.