It was reported that Affin Holdings Bhd might merge with Hong Leong Bank Bhd. As a result, Affin Holdings' stock surged 13%. Affin Holdings said it is not in talks to merge its bank with Hong Leong Bank Bhd. Affin Holdings said in a statement, “The board wishes to clarify that it is not involved in any discussions involving a merger of Affin Bank and Hong Leong Bank.” It said that it is, in fact, not in talks on any potential merger or acquisition relating to its banking operations at the moment. Business Times had cited unnamed sources as saying that a merger between the two banks might be possible as there was speculation that Guoco Group Ltd. might buy a controlling stake in Bank of East Asia Ltd. (BEA). The speculation came about after Guoco raised its stake in BEA last week to 8.01% from 7.99% per cent. Tan Sri Quek Leng Chan, owner of Hong Leong Bank controls both Guoco and Hong Leong, while BEA has a 20.5% stake in Affin Bank. BEA's share price rose sharply after Guoco increased its stake in the firm last week. The bank has, however, since said that it has not been in any talks relating to intended acquisitions.

Bank of East Asia Ltd stated that the company is unaware of any reasons for the recent increases in its shares. The company stated that it is not in negotiations or agreements relating to intended acquisitions or realizations which are disclose able under listing rule.

Bank of East Asia Ltd’s scrip jumped the most in 11 years on speculation that Guoco Group Ltd. may offer to buy the bank. The share jumped 15% to HKD 33.35 and Guoco rose by 1% to HKD 96.75. Salina Tong, a spokeswoman at Bank of East said, “The Company didn’t know the reason behind today’s share movement.” Stella Lo, company secretary at Guoco, declined to comment on whether the firm is planning a takeover of Bank of East Asia. “The stake is part of our strategic investment,” Stella Lo said.