|Bid||27.45 x 3100|
|Ask||27.45 x 3000|
|Day's Range||26.66 - 27.31|
|52 Week Range||17.95 - 39.37|
|Beta (5Y Monthly)||0.40|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb 27, 2020|
|1y Target Est||26.71|
(Bloomberg) -- Fear of owning HSBC Holdings Plc shares is turning into a fear of missing out on a major rally.Europe’s biggest lender is up 51% in Hong Kong since touching its 25-year low in September, and is the best-performing stock on the Hang Seng Index this quarter. Just two months ago, investors were fretting over how mounting regulatory and economic pressures would squeeze the firm’s key businesses in Asia. Shares of HSBC rallied 3.7% on Wednesday in Hong Kong, while the Hang Seng fell 0.1%.But a lot has changed since then. British regulators have signaled they would consider softening their stance on a dividend ban imposed on banks in March at the height of the pandemic. Also, HSBC recorded better-than-expected third quarter results on cost savings while investors have piled into financial stocks as part of a sector rotation.“HSBC’s fortunes have improved with a U.S. presidency change likely to ease trade and China-U.S. tensions, as well as increasing cost savings expectations and a likely return to dividends in 2021,” said Jonathan Tyce, an analyst at Bloomberg Intelligence.HSBC’s Hong Kong-listed stock has punched through several major resistance levels and is now trading above its 50-day, 100-day and 200-day moving averages. Its 14-day relative strength index is at 73, a level indicating the stock is in overbought territory.China PlansThe gains come after a testing period for the bank in its crucial China market. HSBC shares in Hong Kong plunged to their weakest since 1995 in September after it was seen as a possible candidate for China’s “unreliable entity list” that aims to punish firms, organizations or individuals that damage national security. Chinese media blasted it over its role in the U.S. investigation of Huawei Technologies Co. HSBC had also faced pressure to publicly endorse China’s new security law in Hong Kong.But there are indications that the standoff with China may be easing. Last month, the Communist Party’s Global Times newspaper highlighted on Twitter comments from HSBC Chairman Mark Tucker about the bank’s China expansion plans. China’s U.K. ambassador Liu Xiaoming quoted the tweet supporting the move.Still, most analysts have yet to soften their stance on the bank’s outlook. Just this week, Deutsche Bank AG and Credit Suisse Group AG analysts reiterated negative ratings on the firm’s shares in London, according to data compiled by Bloomberg. Only six of the 31 analysts tracked by Bloomberg who follow HSBC recommend buying and 13 give it a sell.On the other hand, Citigroup Inc. raised its price target for HSBC by 24% late last month saying that it’s better positioned than other Hong Kong banks going into 2021 on stronger earnings recovery and an expected dividend restart. Goldman Sachs Group Inc. recommended a buy rating.HSBC has some hurdles ahead, with the ongoing pandemic forcing the firm to step up cost-cutting plans to contain debt. The firm also mulled plans to offload its U.S. consumer franchise.Beyond the company’s strengthening outlook, the bank has also been a beneficiary of investors piling into bank stocks in a move widely attributed as sector rotation. Standard Chartered has gained about 41% so far this quarter, while Industrial & Commercial Bank of China Ltd. is up 27% in Hong Kong.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 Bank USA kicks off the year-end giving season with announcements on Giving Tuesday of increased contributions to organizations providing humanitarian relief from a number of crises impacting American this year, including economic disruptions caused by the COVID-19 pandemic, and the wildfires on the Pacific coast.
(Bloomberg Opinion) -- In Europe’s embattled banking industry, few chief executive officers can claim to have made as meaningful a mark on their business as Jean Pierre Mustier at UniCredit SpA. Unfortunately for him, running a national banking champion — especially during a pandemic, and especially in Italy — also requires a high degree of political savvy.That Mustier’s future at UniCredit is coming to an abrupt end doesn’t say much about his plans for the lender, nor his abilities; it is more about the role an increasingly interventionist Italy would like its banks to play.In his four years running the bank, the French CEO has dramatically reduced a mountain of bad debt, improved efficiency and sold non-core assets. Just before the pandemic hit, UniCredit was in good enough health to plan a significant boost to shareholder payouts, finally reaping the rewards of his turnaround. True, Mustier got rid of higher-growing businesses and burned through a massive capital raise. And the shares were still languishing, trailing behind its bigger Italian peer, Intesa Sanpaolo SpA. But his decisiveness and ability to deliver on financial targets had even attracted the attention of HSBC Holdings Plc, which considered Mustier as CEO. Surely the Italian lender should be bending over backward to keep him.And yet, as Mustier tries to revive the bank’s profitability after the shock of the pandemic, he finds that Italy’s Treasury and other parts of the government are the stakeholders he needs to please, not ordinary shareholders. Italy is eager for UniCredit to become a white knight for ailing Banca Monte dei Paschi di Siena SpA, and Mustier — naturally enough — isn’t so keen. That has cost him his job. The CEO on Monday informed the bank he will leave in April citing a clash of opinion with the board on the firm's strategy.Taking over Monte Paschi is a distraction UniCredit could do without, even if it comes with a large state subsidy to cover the costs and any capital shortfall. The combination wouldn’t give UniCredit a better position in Lombardy, Italy’s economic engine. And it might get in the way if a more appealing international target came along. Strategically, the Italian bank would be better off buying Commerzbank AG, boosting its already considerable presence in Germany.But it’s becoming clear that the Italian state wants to put domestic considerations back at the heart of the bank’s strategy. The appointment last month of Pier Carlo Padoan, Italy’s finance minister at the time of Paschi’s nationalization, as UniCredit’s next chairman showed the direction of travel. As my colleague Ferdinando Giugliano has noted, Rome has been reversing a decades-long shift on letting the markets take care of its businesses, and is now pursuing a more interventionist approach.While this is troubling, there is also an argument that Mustier’s reluctance to grow the business in Italy could hurt strategically. Intesa’s purchase of smaller rival UBI Banca SpA has reinforced its dominant market share, hampering UniCredit’s ability to dictate prices and keep the best clients. France’s Credit Agricole SA is also buying a smaller Italian lender to bulk up in the country. Mustier’s insistence that the bank should shun domestic M&A for now may not pay off as the rest of the industry consolidates around him.For Mustier, running the bank purely for financial returns was always going to be difficult for an outsider. For investors, the hope must be that UniCredit doesn’t sacrifice talent for political aims at any cost.(The second and fifth paragraphs were updated to reflect the news that Mustier will leave Unicredit. )This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.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.