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What do you think about HSBC's future in Hong Kong and Greater China?

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  1. #21

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    May 2019
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    Quote Originally Posted by DimSumBond;3724086[B
    ]I wouldn't be too sure of this. If Hong Kong were to become unsustainable, the bank would be bleeding in its other markets where they are largely underscale and sub par due to years of under investment. They would either collapse or transfer capital to keep their other markets propped up at a bigger discount than normal. And only then would they care about the customers in Hong Kong. [/B]



    Yes, this is why I started the thread. I don't see many articles, financial news or journalists on this. HSBCs history in Hong Kong is a long and storied one, but the Hong Kong we knew is over and its future may very well not need the British giant.
    This is utter nonsense, and one of the worst things about 'the internet'. This time next week it'll be forgotten and you'll be making another wild unchecked prediction.

  2. #22

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    Jan 2018
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    617
    Quote Originally Posted by TheRoadAhead
    Agreed, but I wonder how exposed to Hong Kong HSBC actually is, and how it compares with direct/indirect exposure to Mainland. I don't know if HSBC would be in a financial turmoil if the situation in HK became uncontrollable besides the obvious symbolic impact.
    Hong Kong is the largest bank in Hong Kong with significant exposures to the domestic lending/ mortgage markets. With property not looking so good, we can expect to see write-offs growing. HSBC is also very active in the PRD and in funding and providing cash management to the companies and SME that make up the PRD Hong Kong economy.

    A revision in dividend payments to foreign shareholders will do significant damage to HSBC in a time where there is so much domestic headwinds. And let's also not forget HSBC's other subsidiaries that are not going to fair well in slow growth and low interest rate environments.

    Due to HSBC's concentration on Hong Kong, it is the Elephant in the Room. I'm watching this closely.

  3. #23

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    Jan 2018
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    617
    Quote Originally Posted by Kowloon72
    This is utter nonsense, and one of the worst things about 'the internet'. This time next week it'll be forgotten and you'll be making another wild unchecked prediction.
    Awesome contribution. You having a bad day? Adding you to my ignore list.

  4. #24

    Join Date
    Apr 2019
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    174
    Quote Originally Posted by DimSumBond
    Hong Kong is the largest bank in Hong Kong with significant exposures to the domestic lending/ mortgage markets. With property not looking so good, we can expect to see write-offs growing. HSBC is also very active in the PRD and in funding and providing cash management to the companies and SME that make up the PRD Hong Kong economy.

    A revision in dividend payments to foreign shareholders will do significant damage to HSBC in a time where there is so much domestic headwinds. And let's also not forget HSBC's other subsidiaries that are not going to fair well in slow growth and low interest rate environments.

    Due to HSBC's concentration on Hong Kong, it is the Elephant in the Room. I'm watching this closely.
    It would be useful to dive into the exposure of HSBC within Mainland China, Hong Kong and other Asian countries. I don't think they publish their reports splitting the data by country but rather by region as previously shared on this thread.

    I agree that Mainland China would probably prevent HSBC's reach in Mainland as a result of this apocalyptical event which makes sense from a financial and geopolitical perspective (i.e. they have the largest banks in the world and if HSBC fails that's matter for the CCP to show how HK failed).

    This is very tricky. I am planning to open a HSBC Expat account in the UK but I'm wondering if HSBC was to fail how easy it would be to transfer my shares back to another bank (HSBC being the custodian in this case...)

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