25.64 0.00 (0.00%)
After hours: 5:29PM EDT
|Bid||25.58 x 4000|
|Ask||25.82 x 3100|
|Day's range||25.22 - 25.64|
|52-week range||22.67 - 41.90|
|Beta (5Y monthly)||0.51|
|PE ratio (TTM)||28.65|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||27 Feb 2020|
|1y target est||26.99|
The HSBC share price is up this morning, but the FTSE 100 bank carries far too much political risk for me. I'd look elsewhere for income and growth.The post The HSBC share price is soaring today. Yet I wouldn't buy this stock, or Standard Chartered appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- As a diplomatic tit-for-tat escalates between Washington and Beijing, millions of Chinese investors — defiant and patriotic — are once again engineering a fast and furious bull market on their home turf. The theme? Self-reliance.Two years ago, when the trade war first hit, China’s $8.5 trillion stock market sank into one of its deepest bear episodes, as worries about the economic damage of decoupling took root. This time, tension with the U.S. hasn't even made a dent. Rather, mainland shares are on fire. The benchmark CSI 300 Index has rallied 14% this year, to trade at a five-year high. The S&P 500 Index, by comparison, is still in the red. Daily trading volume has exceeded 1 trillion yuan ($142 billion) for three consecutive trading days. The latest frenzy began right after Beijing imposed its national security law on Hong Kong, despite U.S. opposition. Now, investors have renewed their faith that China is finally recognizing the importance of self-sufficiency. Bullish sell-side analysts are tossing around buzz words like national champions, import substitutes and capital market reforms; ultimately, these boil down the idea that turning inward is good for stocks. There are many examples. Consider Shanghai-based Semiconductor Manufacturing International Corp., a chip foundry that counts Huawei Technologies Co. as its largest client. Rather than languishing as Huawei gets boxed out of U.S. technology, SMIC’s Hong Kong-listed shares are up over 200% this year.On the financing front, SMIC is behaving every bit like a national champion already. On May 15, the day Huawei got slapped with further sanctions, the state-owned China Integrated Circuit Industry Investment Fund, which held close to 20% of SMIC as of December 2019, said it would co-invest about $2.5 billion into one of its wafer plants. Meanwhile, securities regulators have fast-tracked the company’s plans to raise as much as $7.5 billion in Shanghai, the largest mainland initial public offering in a decade. Beijing is well aware that chip manufacturing is a capital-intensive business, and it must provide financial support as SMIC races to catch up on technology. In the industrial space, global supply-chain disruption is already benefiting Chinese players. For instance, Sany Heavy Industry Co., China’s largest excavator maker, has seen its domestic market share jump to 27% from 8% in 2010, at the expense of foreign brands, data provided by HSBC Holdings Plc show. No surprise, Sany’s stock is up 24% this year, while Caterpillar Inc., whose mainland market share shrank to 11% from 14% in 2016, is down 13.5%. Jiangsu Hengli Hydraulic Co., a large manufacturer, tells a similar story. It’s up 55% this year. Washington’s attempt to block mainland businesses’ access to U.S. money — from the delisting of Chinese American depositary receipts in New York, to forbidding federal pension funds from investing in mainland companies — is only forcing Beijing to speed up its capital markets reform. Regulators are already rewriting equity financing rules, including the launch of new registration-based IPOs, and opening new funding venues for young startups. As a result, we can expect China’s stock market to grow to 100% of its gross domestic product in the next five to 10 years, from 60% now, estimates CICC Research.When it comes to stock investing, China and the U.S. face the same set of problems. A slowing economy inevitably eats into corporate earnings growth, narrowing any justification for a further bull run.But President Donald Trump is giving China’s stock market a second wind. Huawei may prefer chips made by Taiwan Semiconductor Manufacturing Co. — after the U.S. sanctions, though, it may have no choice but hold its nose and buy domestic. Meanwhile, industry consolidation, which benefits domestic firms, is only accelerating now that Beijing is openly supporting its national champions. Trump is always looking at the stock market for validation. This time, he’s looking at the wrong one.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HSBC Holdings Plc has decided to close its industrial metals business, it told Reuters on Friday, as Europe's largest bank pushes ahead with plans to cut around 35,000 jobs. HSBC was a small player in industrial metals. "We remain focused on growing our leading position in precious metals," an HSBC spokesman said, declining to comment further.
HSBC Holdings Plc <HSBA.L> said on Friday it would make new investments in its wealth management and insurance operations in mainland China. The announcement comes at a time when the UK-headquartered bank is under fire from some shareholders and British lawmakers for its support for the new National Security Law in Hong Kong, its largest market, which critics say undermines freedoms in the city. HSBC will establish a financial technology company on the mainland, and its life insurance joint venture in China will hire new staff to provide non-branch based wealth management services to customers in Shanghai and Guangzhou, the Asia-focussed lender said in a statement.
European stock markets are set to open just higher on positive signs of a global economic recovery, but ranges will be tight with the U.S. markets on holiday and the number of coronavirus cases still mounting. At 2:25 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.5% higher, the FTSE 100 futures contract in the U.K. up 0.2%, and CAC 40 futures in France up 0.4%. The U.S. accounts for around a quarter of the 10.8 million coronavirus cases recorded worldwide.
(Bloomberg Opinion) -- The national security law China imposed on Hong Kong this week will damage civil liberties with long jail sentences and grant immunity to Chinese agents working in the territory. For investors who depend on the city as a financial center, though, there may be an extra sting in the tail.The law could increase self-censorship by Hong Kong’s analysts and economists, and damage the credibility of research reports, the Financial Times reported this week. The need to maintain relationships with mainland clients has influenced coverage in the past, but many fear the new law will exacerbate this trend.It’s a bit late to be worrying about that, though. Self-censorship isn’t just a matter of avoiding gratuitous digs and glib phrases. If you look at the ratings given by equity analysts in recent years, it seems to include portraying companies with strong mainland connections as better investments than they actually are.Take the 50 companies on the Hang Seng Index. You can easily break them into three groups: 15 Chinese state-owned enterprises, or SOEs, such as Bank of China Ltd. and PetroChina Ltd.; 13 civilian-controlled mainland Chinese businesses, or COEs, such as Tencent Ltd. and Sino Biopharmaceutical Ltd.; and 22 other, mostly locally controlled stocks, such as HSBC Holdings Plc, CK Hutchison Holdings Ltd. and AIA Group Ltd(1). Then look at the extent to which analysts’ consensus target prices have exceeded actual stock prices in recent years. SOEs get the most favorable treatment, with target prices exceeding actual prices by an average of 24% since the start of 2016, compared to 16% for the COEs and 13% for non-mainland companies.It’s not just in Hong Kong that brokers’ target prices tend to run higher than the actual market — there’s a reason they’re called sell-side analysts. China is still an emerging market, too, so it’s not impossible that its stocks simply have more upside than those operating out of a mature economy such as Hong Kong. So perhaps the reason state-owned enterprises get a target price premium over local companies is simply that they’re better investments that will deliver higher returns to investors?If only. Thanks to booming tech and biotech stocks and the huge run-up in prices during 2017, civilian-owned Chinese companies did achieve pretty stunning average total returns of 31% over the past four-and-a-half years. SOEs, however, averaged a measly 1.9%, far less than the 6.1% achieved by the non-mainland stocks.It’s not totally irrational that possessing a wealthy patron should be seen as an advantage for some investments. The Chinese state tends to put its thumb heavily on the scales in favor of its own organs, with diminishing benefits the further you get from the commanding heights of the economy, as my colleague Shuli Ren has written.In particular, it’s logical for credit analysts to give state-owned enterprises a better rating than those that can’t count on the backing of the Chinese government to bail them out. Even there, you’ve not been paying attention if you think the interests of private bondholders are going to be treated equally with those of better-connected investors.Still, when looking at the equity market, the proof should be in the pudding. If analysts predict a stock will consistently outperform — as they tend to do in relation to SOEs — then it should do that. If not, they’re either bad at their jobs or misleading their clients.There are many things to worry about in Hong Kong’s new national security law. The integrity of equity research is probably not one of them. Sell-side brokers themselves gave that away long ago.(1) We've equal-weighted each of these baskets of stocks so that a few stocks with huge market caps like Tencent, HSBC or China Construction Bank don't skew the overall result.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HSBC Bank USA, N.A. ("HSBC USA"), part of HSBC Group, one of the world’s largest banking and financial services companies, today announced it will provide $10 million to support the New York Forward Loan Fund (NYFLF), part of Governor Andrew M. Cuomo’s initiative to reinvigorate New York’s smallest businesses, landlords and critical non-profits. The NYFLF will provide affordable and flexible capital to participating Community Development Financial Institutions (CDFIs) so they can make rapid recovery loans in communities hard hit by the COVID-19 health and economic crisis.
Dividend cuts, unrest in Hong Kong and large job cuts have all seen the HSBC share price fall over the past year. But is it really all doom and gloom?The post Here's my take on the HSBC share price, and it's not what you'd expect appeared first on The Motley Fool UK.
British Foreign Secretary Dominic Raab reprimanded HSBC <HSBA.L> and other banks on Wednesday for supporting China's new security law, saying the rights of Hong Kong should not be sacrificed for bankers' bonuses. Senior British and U.S. politicians criticised HSBC and Standard Chartered <STAN.L> last month after the banks backed China's national security law for the territory.
Quality and value are two of the most important drivers of stock market returns - yet many investors fail to take them seriously. At a time of deep economic un...
As the bank takes its restructuring plan off hold, can the HSBC share price start to make some gains?The post Will the HSBC share price bounce back as restructuring begins? appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- As Keith Skeoch prepares to step down as chief executive officer of Standard Life Aberdeen Plc, the report card on his tenure reads: “A for Effort, B for Achievement.”By the time he leaves in the third quarter, it will have been three years since he and former Aberdeen Asset Management CEO Martin Gilbert engineered the merger of their respective firms in August 2017. The deal was designed to create an asset manager that could compete in what Gilbert dubbed “the $1 trillion club.” The reality has turned out to be somewhat different.Size has proven to offer scant defense against the trends buffeting the fund management industry, including money flowing away from active managers and into low-cost, index-tracking products, increased regulatory scrutiny and relentless downward pressure on what firms can charge for managing other people’s money.It’s impossible to test the counterfactual Skeoch has stressed: that Standard Life and Aberdeen would have fared even worse as standalone firms. But for shareholders, the union has been less than blessed.Douglas Flint, who took over as chairman in January 2019, has been a catalyst for change. Two months after his arrival, the company abandoned the dual CEO structure it had operated since the merger, with Skeoch taking sole control. Gilbert said he wanted to avoid having Flint “tap me on the shoulder and say ‘come on, it’s time to go.’” Flint’s previous role as chairman of HSBC Holdings Plc was probably instrumental in the choice of Skeoch’s successor, Stephen Bird, who ruled himself out as a potential candidate for the top job at HSBC earlier this year. Bird’s career experience during 21 years at Citigroup Inc., most recently as head of its global consumer banking unit, after acting as the bank’s top executive in Asia, gives a strong hint as to where Standard Life Aberdeen expects its future growth to come from.Geographically, Asia is at the top of every fund manager’s list of potential customer growth; Bird’s contact book should help open doors in the region. And Standard Life Aberdeen’s wealth management division, which “has not lived up to potential,” according to a Tuesday research note from Hubert Lam at Bank of America Corp., will be in renewed focus.I wrote in December that Flint might be tempted to tap Skeoch on the shoulder if the firm’s performance didn’t improve. Still, his departure is a surprise, and it’s a shame he couldn’t go out on a higher note by delivering a boost to assets under management and a share price worth more than half its value since the merger. Whether his successor’s lack of asset management experience will prove a blessing or a curse remains to be seen.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HSBC <HSBA.L> investor Federated Hermes said it has questions about the bank's support for China's new security law for Hong Kong, the second investor in Europe's biggest bank in recent weeks to voice concerns about the lender's stance. "We expect companies to support improvements in protections for citizens and not back their removal," said Roland Bosch, lead engager for financial services at Federated Hermes's stewardship and engagement team. The new law could have an adverse impact on human rights, he said.
Just 9,300 new mortgages were approved across the UK in May, as the COVID-19 pandemic pushed the housing market to near standstill.
(Bloomberg) -- The prospects for HSBC Holdings Plc and other banks to recover losses from a failed Singapore oil trader are dimmer than originally thought after an accounting review found the energy firm overstated assets by $3 billion and fabricated documents on a “massive scale.”Hin Leong Trading (Pte) Ltd. has assets of about $257 million, or 7% of its estimated $3.5 billion in liabilities, the company’s interim managers said in a report to Singapore’s High Court on Tuesday. That’s less than half the assets estimated by founder Lim Oon Kuin and his son Evan Lim, according to earlier affidavits to the court.HSBC is among 23 banks owed almost $4 billion by Hin Leong, one of the largest traders in Singapore before its collapse in April following a plunge in oil prices that exposed what the report found were “manipulated” accounts and frequent double counting of cargo to keep credit lines flowing.“The scale and regularity of the fabrication suggests that the practice was routine and pervasive,” the report found. “These forged documents enabled the company to mislead banks in extending financing to the company and also acted as supporting documentation for the fictitious gains and profits.”HSBC, the London-based bank with the most exposure to Hin Leong at about $600 million, declined to comment on the report. Hin Leong didn’t respond to email inquiries seeking comment. The court filing was earlier reported by Reuters and Singapore’s Straits Times.Hin Leong “systematically manipulated its accounts to inflate the value of its accounts receivables” to present an exaggerated picture of its financial health, according to the report by PricewaterhouseCoopers LLC’s Chan Kheng Tek and Goh Thien Phong. Chan and Goh, who were appointed in April as interim judicial managers to oversee the company, added that Hin Leong has “no reasonable prospect” of rehabilitation as a standalone entity.Legal DisputesThe trading house and its sister companies owned by the Lim family should be put together as an integrated trading platform to be restructured, while the Lims should inject their personal assets, the managers said in the report. The Lims, who received dividends totaling $90 million in the 2018 and 2017 fiscal years, haven’t responded to this suggestion via their legal advisers, according to the report.The Hin Leong collapse has sparked several legal disputes among banks and other creditors seeking to recover losses from the debacle. Sinopec last month lost a legal bid to halt a loan payment, while Winson Oil Trading Pte. Ltd. took Oversea-Chinese Banking Corp. to court, demanding payment for a sale of fuel tied to Hin Leong.Hin Leong’s audited financial statements for the financial year ended in October overstated the value of its assets by at least $3 billion, according to the report. This overstatement comprised $2.23 billion in accounts receivables that have no prospect of recovery, and $800 million in inventory shortfalls, it said.As part of the alleged manipulation, Hin Leong transfered money among its various bank accounts to give the false impression that accounts receivables were collected, when no payments were received, the managers said. This not only inflated the value of the balances, but also gave it an appearance of legitimacy by ensuring that the accounts were kept current, they said.The moves helped conceal significant losses, the managers said, adding that Hin Leong suffered derivatives trading hits of about $808 million over the past decade.Non-Existent CargoAmong its $3.5 billion in liabilities, there are about 273 outstanding letters of credit facilities issued by 23 lenders, the report said. About 60 of them, amounting to $1.5 billion, were used in bilateral or multi-party transactions in which Hin Leong would buy and sell the same cargo on the same date, or within a short interval, at a loss. These trades were done for the sake of obtaining liquidity, the report said.In other instances, the company would sell and buy back non-existent cargo from its counterparty for financing, the report said. Other transactions included purchasing cargo only to sell it back simultaneously without taking physical delivery.The PwC report said the company and founder OK Lim haven’t replied to questions from the managers, nor stated whether or when they will respond. Lim’s lawyers said he is unwell and won’t be able to assist “for a prolonged period of time,” according to the report.(Adds HSBC declined to comment in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Lloyds Bank share price has picked up in the past few days, but the HSBC share price hasn't. Yet HSBC can be a good long-term bet. Here’s why. The post Forget the Lloyds Bank share price! Here’s why I think the HSBC share price is a better bargain appeared first on The Motley Fool UK.
Zopa has been granted a full banking licence with no restrictions, allowing it to launch its fixed savings account and credit card to the public later this year.
It's been three months since the UK went into enforced lockdown. These seven FTSE 100 shares have suffered most during isolation.The post These are the dogs of the FTSE 100 during lockdown. I'd buy one of them today! appeared first on The Motley Fool UK.
HSBC cuts 35,000 jobs! Does this make the bank a good investment?The post HSBC cuts 35,000 jobs! Can the bank make or break your portfolio? appeared first on The Motley Fool UK.
Report from HSBC and The Sustainability Consortium urges businesses to prepare supply chains for climate change and helps them understand risks
The Financial Conduct Authority wants banks and credit card providers to offer payment holidays and interest free overdrafts for another three months.
The chair of the new Business Banking Resolution Service says he is expecting a wave of complaints to arise from the COVID-19 crisis.