The Bank of East Asia (BEA) is one of Hong Kong's largest banks, and is chaired by banking sector representative David Li Kwok-po. In a recent report, Pacific Challenge Securities lowered its recommendation on the company to one of 'take profit'. This change was triggered by BEA's strong third-quarter results, which saw profits reach HK$655 million. Annualised third-quarter earnings on these results would be HK$1.88 per share, in excess of earnings forecasts of HK$1.45 per share for 2000, and HK$1.65 per share for this year. BEA also has announced a proposed offering of 10-year subordinated notes, which followed the positive earnings data. This news prompted buying activity and BEA's price rose 4.5 per cent on Monday. With this in mind, Pacific Challenge believes there is less than 10 per cent upside remaining, particularly given that BEA has risen 31 per cent in six weeks. Pacific Challenge also has voiced concerns over fourth-quarter results, with a weaker showing expected. Graphic: now14gwz