HSBC shares rose by almost 11% in Hong Kong’s Monday afternoon session, after Ping An, the biggest shareholder, increased stake to 8%, according to South China Morning Post. Rise was the biggest since 2009, as Ping bought 10.8 million shares last week. Share finished the day at HK$30.80 (US$3.97).
- Bank plans to reinvest capital in underperforming US and European banks and eliminate 35,000 jobs globally.
- Ping An views HSBC as a “long-term investment” and has been a major HSBC shareholder since 2017.
- Worsening relationship between Washington and Beijing could affect the bank.
- HSBC has been at the center of U.S-China strained relations, including Huawei inquiry and Hong Kong controversial national security law
- Banks have been trading lower as coronavirus weakened economies, but HSBC has been much worse.
- HSBC shares had fallen to a 25-year low the previous week on concerns of processing trillions of dollars of money transfers related to potential criminal activity.
- Earlier, HSBC lost $84 billion in market capitalization following U.S.-China tensions, weak operating environment, and elimination of its dividend over a request by the UK’s chief regulator.
HSBC shares responding favorably to Ping An capital revamp. HSBC: NYSE is up 9.83%