Emerging Markets and the Global Economy

Chapter 3

Emerging Markets Banks Performance Evidence from China’s Banks in Hong Kong

Xiaoxi Zhang^a and Kevin Daly^b,    ^aSchool of Economics and Finance, Campbelltown Campus, University of Western Sydney, Penrith, NSW, Australia,    ^bInstitute of Economic Research, Chinese Academy of Social Sciences, Beijing, China,    E-mail: [e-mail], [e-mail]

Abstract

This chapter reports results on the performance of mainland China-owned banks operating in Hong Kong and compares them to Hong Kong State Administered Region (HKSAR) 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 ...