Analysts are divided over whether the lending giant is a must-have or 'sell'
Market opinion on BOC Hong Kong (Holdings), the territory's second-largest bank, swings wildly between good, bad and downright ugly.
This is hardly surprising considering the stock has been weighed down by the bank's connections to scandal-plagued Shanghai property developer, Chau Ching-ngai, yet at the same time has been given impetus by the move to allow Hong Kong banks yuan clearing services as part of the closer economic partnership arrangement (Cepa).
Many market watchers said it was likely that BOCHK would pip ICBC (Asia) to become the settlement bank for yuan deposits once the relevant authorities began the tendering process.
The stock has responded strongly in the past couple of weeks, gaining almost 9 per cent, before falling 0.59 per cent to settle yesterday at $8.40.
However, a $2.11 billion loan facility BOCHK extended to Mr Chau last year still hangs over the bank like a dark cloud.