Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBCs international network comprises over 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. Companby has listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

            Red = 25 day moving average.           Green = 200 day moving average.

Why should HSBC be any different to other banks following the credit crunch and don't forget their massive exposure to property lending in the far east especially in Hongkong.

because they were seemingly that much more prudent than many others ..... and that is propobly indeed the case, even if they are not immune

They weren't very prudent in the US when they were the first to buy a sub prime mortgage bank for us$billions.

So the far east property is the case, the share price is going down so much, any idea for how much will go down?. thanks.

HSBC falls after Goldman cuts to 'sell'

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Shares in HSBC fall 4.8 percent, making them among the top losers on the FTSE 100, after Goldman Sachs downgrades Europe's biggest bank to 'sell' from 'neutral' and slashes its price target to 650 pence from 950 pence.

The broker says in a report on Euoropean banks that recent actions by policymakers across the globe has eroded the outperformance of HSBC, which has relatively strong liquidity and capital position.

'Our fundamental view on the sector is that the focus will move from liquidity concerns to on balance sheet lenders as the credit cycle deteriorates, which is where our key concern exists for HSBC. If the market continues to focus on franchise strength and ignores underlying earnings trends, then HSBC is likely to continue to outperform,' Goldman says.

Trust GS to put the boot in..

Not before they added a significant short position no doubt

anyone think HSBC in trouble? the dropping SP would appear to be in 'sympathy' with the other banks but not quite to the same extent. I am still holding.
Alex

We would be very cautious HSBC has still big exposure to sub prime in the US business in China/Hongkong is crashing as are property values, the question is have they come clean on their need to make more massive provisions for bad debts? As we have seen with Citigroup the bigger you "were" the harder you fall.

It seems not, but never know, 2ed March 09 will give a clearer pic the sp might drop little more

next stop 3.

added today... 600p soon

???????????!!!!!!!!!!!!!!!

Halifax, you are right, HSBC is going cap in hand now. Funds are in jeopardy.

300p or below on the cards now within the next few days.

justyl all depends on tomorrows reaction in Hongkong certainly results are very disappointing and with the rebasing of next years dividend the initial market reaction is likely to be negative.We calculate an ex rights sp around 350p but with further negative reaction to come sp may even fall to the rights price of 254p.

DOWN 97p to 394p ONLY?

NO DOWN 100p to 391p

that would be very bad, I hope not..

China is falling down soon and HSBC is just starting to feel the pinch...



HSBC confirms rights issue, cuts divi - MoneyAM


HSBC today confirmed it is seeking to raise 12.5bn from shareholders through a rights issue. The banking giant said the money raised would assist it in dealing with the impact of the present uncertain economic environment.

HSBC also reported pretax profit for 2008, excluding goodwill impairment, of $19.9bn, down 18%. On a reported basis, pretax profit was $9.3bn, down 62%.

Earnings per ordinary share excluding goodwill impairment were down 18% to $1.36 (2007: $1.65). On a reported basis, earnings per share was $0.47, down 72% (2007: $1.65).

The banker said it would be writing no further consumer finance business in the US through the HFC and Beneficial brands and it would be closing the majority of the network.

HSBC said capital generation remains strong., with a Tier 1 ratio of 8.3% and total capital ratio of 11.4% at 31st December 2008.

The fully underwritten Rights Issue announced would enhance capital strength.

Subject to shareholder approval on 19th March 2009, the Rights Issue will add 150 basis points to capital ratios, strengthening the core equity tier 1 ratio to 8.5% and the tier 1 ratio to 9.8%, both on a pro forma basis as at 31st December 2008.

Total dividends in respect of 2008 were $0.64 including fourth interim dividend of $0.10, down 29%, around 15% in sterling terms. Total value of dividends for 2008 of $7.7bn.

Loan impairment charges and other credit risk provisions were $24.937bn in 2008, $7.695bn higher than 2007.

The group's total assets at 31st December 2008 were $2,527bn, an increase of $173bn, or 7%, since 31st December 2007.

Stephen Green, Group Chairman, said: '2008 was the most extraordinary year for the global economy and financial services in well over half a century. It marked the first crisis of the era of globalised securitisation. And it also marked the first crisis of the just-in-time global economy as the impact of the financial crisis fed rapidly straight into the performance of the real economy.

'We at HSBC were not immune from the crisis. But we have built our business on very strong foundations and are able to report results which demonstrate our ability to withstand the storm.'

Still going down