HSBC Posts Biggest Intraday Jump Since 2009 After Selloff, , on September 28, 2020 at 3:44 am

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(Bloomberg) — HSBC Holdings Plc rose the most in Hong Kong trading since 2009 as its biggest shareholder raised its stake in the embattled lender which last week hit the lowest in quarter of a century.A unit of Ping An Insurance Group Co. revealed in an exchange filing that it last week bought 10.8 million shares of HSBC, bringing its stake to 8% and cementing its place as the largest shareholder. Ping An purchased the shares at an average HK$28.2859 apiece.HSBC shares on Monday rose as much as 8.5%, the biggest intraday gain since April 2009, clawing back some of last week’s 8.9% loss. They were up 7.98% to HK$30.45 as of 11:43 a.m. in Hong Kong.The bank had plunged to 25-year low in part on speculation a massive bet on China could be thwarted. The ruling Communist Party’s Global Times newspaper reported that the bank could be put on an “unreliable entity” list that aims to punish firms, organizations or individuals that damage national security. It has rankled China over its participation in the U.S. investigation of Huawei Technologies Co.“Ping An’s investment is giving a little reason for the gain today, but HSBC’s problems are still there,” Steven Leung, an executive director of Uob Kay Hian (Hong Kong) Ltd., said by phone. “The overall environment is still challenging as interest rates are low and there’s no visibility when HSBC will be able to distribute dividends again, as well as the tensions between China and the U.S.”Ping An said in a statemen Monday that its holding is a “long-term financial investment.” The Shenzhen-based company, which has owned a major stake in HSBC since late 2017, has seen the value of those shares tumble by at least $8.6 billion over the past three years, according to data compiled by Bloomberg.“Ping An is a long-term investor so the critical point is whether there are structural issues at the bank that go against the insurer’s investment philosophy,” said Steven Lam, Hong Kong-based insurance analyst at Bloomberg Intelligence.HSBC was also among global banks named in a report by the International Consortium of Investigative Journalists on lenders that “kept profiting from powerful and dangerous players” in the past two decades even after the U.S. imposed penalties on the institutions.Facing difficulties in navigating low interest rates and surging loan losses sparked by the global pandemic, the bank’s profit halved in the first half. HSBC Chief Executive Officer Noel Quinn last month warned bad loans could swell to $13 billion this year. Quinn said the bank would attempt to hasten a shakeup of its global operations, accelerating a further pivot into Asia as its European operations lose money.In response to the ICIJ report last week, the bank said that “starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions. HSBC is a much safer institution than it was in 2012.”(Updates shares.)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.,

HSBC Posts Biggest Intraday Jump Since 2009 After Selloff(Bloomberg) — HSBC Holdings Plc rose the most in Hong Kong trading since 2009 as its biggest shareholder raised its stake in the embattled lender which last week hit the lowest in quarter of a century.A unit of Ping An Insurance Group Co. revealed in an exchange filing that it last week bought 10.8 million shares of HSBC, bringing its stake to 8% and cementing its place as the largest shareholder. Ping An purchased the shares at an average HK$28.2859 apiece.HSBC shares on Monday rose as much as 8.5%, the biggest intraday gain since April 2009, clawing back some of last week’s 8.9% loss. They were up 7.98% to HK$30.45 as of 11:43 a.m. in Hong Kong.The bank had plunged to 25-year low in part on speculation a massive bet on China could be thwarted. The ruling Communist Party’s Global Times newspaper reported that the bank could be put on an “unreliable entity” list that aims to punish firms, organizations or individuals that damage national security. It has rankled China over its participation in the U.S. investigation of Huawei Technologies Co.“Ping An’s investment is giving a little reason for the gain today, but HSBC’s problems are still there,” Steven Leung, an executive director of Uob Kay Hian (Hong Kong) Ltd., said by phone. “The overall environment is still challenging as interest rates are low and there’s no visibility when HSBC will be able to distribute dividends again, as well as the tensions between China and the U.S.”Ping An said in a statemen Monday that its holding is a “long-term financial investment.” The Shenzhen-based company, which has owned a major stake in HSBC since late 2017, has seen the value of those shares tumble by at least $8.6 billion over the past three years, according to data compiled by Bloomberg.“Ping An is a long-term investor so the critical point is whether there are structural issues at the bank that go against the insurer’s investment philosophy,” said Steven Lam, Hong Kong-based insurance analyst at Bloomberg Intelligence.HSBC was also among global banks named in a report by the International Consortium of Investigative Journalists on lenders that “kept profiting from powerful and dangerous players” in the past two decades even after the U.S. imposed penalties on the institutions.Facing difficulties in navigating low interest rates and surging loan losses sparked by the global pandemic, the bank’s profit halved in the first half. HSBC Chief Executive Officer Noel Quinn last month warned bad loans could swell to $13 billion this year. Quinn said the bank would attempt to hasten a shakeup of its global operations, accelerating a further pivot into Asia as its European operations lose money.In response to the ICIJ report last week, the bank said that “starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions. HSBC is a much safer institution than it was in 2012.”(Updates shares.)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.

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