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

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  1. #11

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    Quote Originally Posted by shri:
    HSBC had / has the option of changing strategies.. They do that in most markets where they realize they have fucked up.
    They have. Haven't seen much of a push for China in the last 5 years.

  2. #12

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    Quote Originally Posted by East_coast:
    They have. Haven't seen much of a push for China in the last 5 years.
    well there's the push for Insurance at least.

    https://www.reuters.com/article/us-h...-idUSKBN22G0QB

    Can't imagine how they'll compete with the likes of Ping An, Zhong An, etc.
    AsianXpat0 likes this.

  3. #13

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    A very small percentage of the Chinese market is still a very big number, so the efforts will continue no doubt...

    But Hong Kong is very much the heart of HSBC... The Asia region is the engine that drives the earnings that support the all critical dividend (which will surely be back post Covid), and Hong Kong represents most of that.

    With the world turning inward there are also surely also headwinds against the trade finance that give HSBC the only other edge it has (beyond its grip on HK) so I'm not hopeful on any recovery in the stock in the short/mid term.


  4. #14
    Quote Originally Posted by Peaky:
    A very small percentage of the Chinese market is still a very big number, so the efforts will continue no doubt...

    But Hong Kong is very much the heart of HSBC... The Asia region is the engine that drives the earnings that support the all critical dividend (which will surely be back post Covid), and Hong Kong represents most of that.

    With the world turning inward there are also surely also headwinds against the trade finance that give HSBC the only other edge it has (beyond its grip on HK) so I'm not hopeful on any recovery in the stock in the short/mid term.
    as long as my assets held by them don’t vanish I’m all good.

  5. #15

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    A bank which does 90% of its profits in a single country which is being turned on it heads is not in a good position to be in imo

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  6. #16

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    Quote Originally Posted by TheRoadAhead:
    as long as my assets held by them don’t vanish I’m all good.
    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.

    Quote Originally Posted by JC83:
    A bank which does 90% of its profits in a single country which is being turned on it heads is not in a good position to be in imo
    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.

  7. #17

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    Are there any HK banks which are free of such a risk one wonders.


  8. #18

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    Quote Originally Posted by Gatts:
    Are there any HK banks which are free of such a risk one wonders.
    Sure, you cannot be risk free, but local banks that focus on Hong Kong customers, pay their dividends to local shareholders (individual and institutional) and reinvest capital back into Hong Kong will be have less risk in general. I can see foreign banks who run retail operations looking unstable in the current environment.

  9. #19
    Quote Originally Posted by DimSumBond:
    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.



    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.
    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.

  10. #20

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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.
    Flapster likes this.

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