HSBC Restructuring and Halt on Buybacks Concern Investors

17 days ago

Louise Moon

"And then secondly HSBC planning to take their Hong Kong unit Hen Bank private. So they're going to buy out minority investors. They'll spend about 14 billion US on that. Um but as a result to kind of have enough cash for this to finance this, they're going to refrain from buybacks for the next three quarters. So shareholders not reacting positively to that. So shares fell both in London and in Hong Kong where they're where they're listed."

Louise Moon explains that HSBC is moving to privatize its Hong Kong unit by buying out minority investors at a cost of around 14 billion US dollars, which has forced the bank to halt buybacks for the coming three quarters. This measure has led to a negative market reaction with shares falling in both London and Hong Kong.

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